Which of the Following Mechanisms for Enhancing Profitability Is Most

question 122

Multiple Choice

Which of the following mechanisms for enhancing profitability is most likely to result from improving short-term forecast performance?

• A)increased inventory
• B)reduced flexibility
• C)higher-quality products
• D)greater customer satisfaction
• E)greater seasonality

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Definitions:

Fixed Overhead

Regular, unchanged costs associated with operating a business that do not fluctuate with production levels.

Direct Labor Rate Variances

This term refers to the difference between the actual cost of direct labor and the expected (or standard) cost, used in manufacturing and budgeting.

Efficiency Variances

The differences between actual performance in terms of time or cost and the standard expected performance.

Cost Information

Refers to data related to the amount of money required to produce goods or services, including production, maintenance, and other associated expenses.