Michael Porter's Diamond Framework Explains

question 21

Multiple Choice

Michael Porter's diamond framework explains

• A) national value creation.
• B) domestic value creation.
• C) national competitive advantage.
• D) domestic competitive advantage.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.

Labor Rate Variance

A specific type of variance that measures the difference between the actual hourly wage paid to workers and the standard rate expected.