Sally's LLC, a Local Supermarket, Has All of the Following

question 27

Multiple Choice

Sally's LLC, a local supermarket, has all of the following characteristics. Which of the following characteristics of Sally's is most likely to be a more sustainable competitive advantage?

• A) Extended hours of operation
• B) More employees
• C) Shared systems with vendors
• D) More merchandise
• E) More sales promotions

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Definitions:

Material Quantity Variance

A financial measurement that calculates the difference between the expected amount of materials and the actual amount used, affecting production costs and efficiency.

Material Price Variance

The difference between the actual cost of materials used to produce a product and the standard or expected cost.

Direct Material Variances

The difference between the actual cost of direct materials used in production and the standard cost, indicating efficiency in using materials.

Favorable Variances

Variances that occur when actual costs are less than standard or budgeted costs, or actual revenues exceed expectations, benefiting the company's financial performance.