Which of the Following Is Not One of Deming's 14

question 6

Multiple Choice

Which of the following is not one of Deming's 14 points?

• A) Institute training.
• B) Drive out fear.
• C) Optimize the efforts of individuals working alone. (LO #4)
• D) Stop making decisions purely on the basis of price.
• E) Improve constantly and forever.

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Definitions:

Predetermined Overhead Rate

An established rate used to apply manufacturing overhead costs to products, calculated in advance based on expected costs and activity levels.

Labor-Hour

A measure of work effort quantified in hours, commonly used to allocate costs or measure productivity in various contexts.

Fixed Overhead Volume Variance

A financial metric indicating the difference between the budgeted and actual volume of production, multiplied by the fixed overhead rate per unit.

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of production, which results in a variance in fixed overhead costs allocated per unit.