The External Forces That Can Push Change in Unplanned Directions

question 40

Multiple Choice

The external forces that can push change in unplanned directions include all of the following EXCEPT:

• A) long-established working practices that are difficult to dislodge.
• B) confrontational industrial relations.
• C) legislative requirements.
• D) industry-wide trends affecting an entire sector.

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Definitions:

Planning Budget

A budget prepared for a specific level of activity; it can be adjusted to reflect various levels of operation.

Labor Rate Variance

A financial measure that compares the actual cost of labor to the expected or standard cost, indicating how well a company manages its labor expenses.

Labor Efficiency Variance

A measure of the difference between the actual hours worked by employees and the expected hours worked, multiplied by the standard labor rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) costs based on the predetermined overhead rate.