The Average Flow Rate Is the Average Time It Takes

question 34

True/False

The average flow rate is the average time it takes one unit to move from the beginning to the end of the process.

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Definitions:

Standard Rate

The predetermined cost or price utilized in budgeting and costing exercises, aimed at simplifying accounting practices or performance evaluations.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.

Total Materials Variance

The difference between the standard cost of materials supposed to be used for the products and the actual cost of materials used.

Price Standard

A predetermined cost that companies use to measure the variance between the expected and actual cost.