The Hierarchical Diagram That Depicts the Subassemblies and Components That

question 2

Multiple Choice

The hierarchical diagram that depicts the subassemblies and components that are needed to produce and/or assemble a product is called a(n) :

• A) assembly time chart.
• B) product structure tree.
• C) MRP II.
• D) pegging.
• E) none of the choices.

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Definitions:

Direct Materials Purchases Variance

A measure used in accounting to analyze the difference between the budgeted cost of materials needed for production and the actual cost incurred.

Actual Production

The real quantity of goods or services produced in a specified period, as opposed to planned or expected production levels.

Labor Rate Variance

The difference between the actual labor costs incurred and the standard labor costs expected for the labor hours worked.

Standard Costs

The estimated costs associated with manufacturing, aimed at aiding budgeting and performance evaluation.