Effective Control Systems Involve the Use of Feedback to Determine

question 16

True/False

Effective control systems involve the use of feedback to determine whether organizational performance meets established standards to help the organization attain its goals.

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Definitions:

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved.

Variable Overhead

Indirect manufacturing costs that vary with the level of production output, such as utilities and maintenance expenses.

Labour Rate Variance

The difference between the actual cost of labor and its budgeted (or standard) cost, often arising from paying different wages than anticipated.

Flexible Budget Variance

A financial performance measure that compares actual results with expected outcomes based on different levels of production or sales activity.