The Product-Based Structure Works Best When a Division Handles Products

question 85

True/False

The product-based structure works best when a division handles products that are technologically similar and can be standardized for marketing around the world.

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Definitions:

Variable Overhead Efficiency Variance

This is the difference between the expected (standard) cost of variable overheads based on actual production outputs and the actual variable overhead costs incurred.

Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of materials.

August

The eighth month of the year in the Gregorian calendar.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.