What Is Important for a 'Continual Improvement Register' (CIR)

question 124

Multiple Choice

What is important for a 'continual improvement register' (CIR) ?

• A) Improvement ideas are documented, assessed and prioritized
• B) Improvement ideas from many sources are kept in a single CIR
• C) Improvement ideas that are not being actioned immediately are removed from the CIR
• D) Improvement ideas are tested, funded and agreed

Distinguish between standards and budgets in terms of unit and total amounts.

Analyze the implications of variance on production efficiency and cost management.

Describe the preparation and usage of standard cost cards in a standard costing system.

Comprehend the impact of standard costing on financial statements and reporting.

---

Definitions:

Capital Intensive

A business process or industry that requires large amounts of money and financial resources to produce a good or service.

Break-even Point

The juncture where the sum of all expenses matches the sum of all income, leading to neither a profit nor a deficit.

Variable Expense

Expenses that vary directly with the amount of production or the degree of operational activity.

Contribution Margin Ratio

The percentage of each sale that exceeds the variable costs of production.