Division of Labor Is Difficult to Achieve in Small Businesses

question 50

True/False

Division of labor is difficult to achieve in small businesses.

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Definitions:

Practical Standard

A level of performance or an expectation that is realistic and attainable under normal circumstances.

Labour Efficiency Variance

The difference between actual labor hours worked and the standard labor hours expected for the level of production achieved.

Direct Labour Standard

A benchmark for the amount of direct labor time that should be consumed in the production of goods or services, used for costing and efficiency analysis.

Perfection Standard

Ideal or benchmark performance criteria in manufacturing or service delivery that represents the highest possible level of quality or efficiency.