Downward Communication Flows from Employees to Executives, Providing Accurate, Timely

question 85

True/False

Downward communication flows from employees to executives, providing accurate, timely reports on problems, trends, opportunities, grievances, and performance.

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Definitions:

Total Variable Overhead Variance

The difference between actual variable overhead costs and the expected (standard) costs for the same period.

Direct Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, indicating the efficiency of labor used in production.

Direct Labor Costs

Direct labor costs are the wages and benefits paid to employees who are directly involved in the production of goods or services, constituting part of the total manufacturing costs.

Total Direct Labor Cost Variance

The difference between the actual direct labor costs incurred and the standard or expected direct labor costs.