One Thing That Makes Aggregate Planning in Services Easier Than

question 47

Multiple Choice

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is

• A)inventory is cheaper to hold.
• B)labor availability is more predictable.
• C)inventory is less perishable.
• D)labor is more flexible.
• E)demand is less variable.

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Definitions:

Fixed Factory Overhead Volume Variance

This calculates the difference between the budgeted and actual volume of production, affecting the fixed overhead costs allocated to each unit of production.

Variable Factory Overhead Controllable Variance

The difference between the actual variable overhead costs and the budgeted costs controllable by management.

Variances

Differences between planned and actual performance in budgeting or costing.

Standard Costs

Predetermined or estimated expenses that are often used to measure the performance of manufacturing departments or operations.