Discuss the Issues, Advantages, and Risks Associated with Using Information

question 100

Essay

Discuss the issues, advantages, and risks associated with using information to gain or maintain strategic advantage.

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Definitions:

Variable Overhead

Costs that vary with the level of production output, such as materials, utilities, and commissions, contrary to fixed overheads.

Total Direct Materials Cost Variance

The difference between the budgeted cost of direct materials and the actual cost incurred for the materials.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be easily traced to it.

Controllable Variance

The difference between expected and actual costs that managers have the power to influence directly.