Production Operations Management (POM)systems Process and Transform Materials,labor,data,and Other Inputs

question 34

True/False

Production operations management (POM)systems process and transform materials,labor,data,and other inputs into outputs,such as goods and services.

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Definitions:

Direct Materials Quantity Variance

The difference between the budgeted amount of materials needed for production and the actual amount used, valuated at the standard cost.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected or standard labor costs for the production volume achieved.

Direct Labor

Labor costs directly associated with the production of goods or services, involving work that can be directly traced back to specific products.

Direct Materials Price Variance

A measurement of the difference between the actual cost of direct materials and the standard cost expected to be paid, expressed in monetary terms.