The Strategy That Deals with Product and Process Innovation and Improvement

question 74

Multiple Choice

The strategy that deals with product and process innovation and improvement is known as a ________ strategy.

• A)marketing
• B)R&D
• C)operations
• D)financial
• E)human resource management

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit of material.

Actual Costs

Expenditures that a company incurs, as opposed to estimations or budgeted amounts.

Standard Costs

Predetermined costs for material, labor, and overhead used as benchmarks for measuring performance.

Direct Labor Time Variance

The difference between the actual hours spent on production and the standard hours expected, multiplied by the standard hourly wage rate.