The Most Powerful of All Guarantees That Promises Complete Customer

question 28

Multiple Choice

The most powerful of all guarantees that promises complete customer satisfaction is the _____ guarantee.

• A)conditional
• B)implicit
• C)specific result
• D)unconditional
• E)unsolicited

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Definitions:

Actual Hours Incurred

The real number of hours worked or used in the completion of a task or production of a good, as opposed to the estimated hours.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost multiplied by the quantity of materials used.

Standard Costing System

A cost accounting system that uses standard costs for product costs and measures variances to actual costs for performance evaluation.

Overhead Volume Variance

The difference between the expected (budgeted) overhead costs and the actual overhead allocated based on actual volume of production.