Location Factors Can Be Dealt with in Both Qualitative and Quantitative

question 78

True/False

Location factors can be dealt with in both qualitative and quantitative fashions.

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Definitions:

Standard Cost Variances

The differences between the actual costs incurred and the standard costs previously set for materials, labor, and overhead in manufacturing.

Labor Efficiency Variance

The difference between the actual number of labor hours worked and the standard hours expected, multiplied by the standard labor rate.

Labor Rate Variance

The difference between the actual cost of labor and its expected cost based on standards or budgets.

Direct Labor Employees

Workers who are directly involved in the manufacturing of products, including those who operate machinery, assemble products, or perform manual labor that can be directly attributed to specific goods or services.