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Ryan Works for a Small Consulting Company

question 9

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Ryan works for a small consulting company. They want to do a better job of tracking their clients and the jobs they have bid on and either won or lost. There are no processes in place right now, and all users (consultants and managers) have different ideas. Their IT consultants have suggested they use JAD to design their application. Which of the following is not an advantage of that design approach.


Definitions:

Direct Labor-Hours

Direct labor-hours are the total time workers spend creating a product or providing a service, directly correlated to the volume of production.

Variable Overhead

Indirect production costs that vary with the level of output, such as utilities or indirect materials used in the production process.

Direct Materials

The raw materials that are directly used in the manufacturing process of a product and are easily traceable to that product.

Direct Labor-Hours

A measure of the work done by manufacturing employees directly involved in the production process, typically quantified in hours.

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