In Which Field Did Systems Thinking Begin

question 15

Multiple Choice

In which field did systems thinking begin?

• A)Medicine
• B) Business
• C)Psychology
• D)Engineering

Interpret the implications of variances for managerial decision-making and cost control.

Understand the concepts and calculations related to standard cost systems.

Analyze and compute direct materials variances, including price and quantity variances.

Analyze and compute direct labor variances, including rate and efficiency variances.

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Definitions:

Fixed Manufacturing Overhead

The costs that do not vary with the level of production or sales, such as salaries of managers, rent of the factory, and depreciation of manufacturing equipment.

Predetermined Overhead Rate

A pre-determined rate utilized for attributing manufacturing overhead costs to products or job orders, which is established beforehand based on anticipated expenses and levels of activity.

Variable Manufacturing Overhead

consists of production costs that fluctuate with the level of output, such as utilities or materials used in the maintenance of equipment.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not vary with production volume, such as salaries of managers, rent, and utility expenses.