Why Specialize

question 153

Multiple Choice

Why specialize?

• A) Because assigning each worker a variety of tasks makes her more productive.
• B) It usually increases productivity.
• C) To decrease our dependence on each other.
• D) There is no economic rationale for specialization.

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Definitions:

Materials Quantity Variance

The variance between the actual amount of materials utilized in manufacturing and the anticipated amount, multiplied by the established unit cost.

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount of materials that should have been used, measured at the standard cost.

Labor Efficiency Variance

The deviation between the actual hours taken to produce a unit of output and the standard hours expected, multiplied by the standard labor rate.