Focus on One of the Three Optimizations Discussed and Explain

question 25

Essay

Focus on one of the three optimizations discussed and explain the type of program it would be best suited for and the type of program that it wouldn't be very good with.

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Definitions:

Sales Price Variance

The difference between the actual selling price and the expected selling price of a product multiplied by the number of units sold.

Average Price

The mean cost of a commodity or service computed by dividing the total cost of all units purchased by the number of units.

Direct Materials Variances

The variance between the real expense of direct materials in production and their expected standard cost.

Standard Direct Materials Cost

Standard direct materials cost is the estimated or pre-determined cost of raw materials used in production, based on standard pricing.