Which of the Following Is LEAST Likely to Result in Above-Average,long-Run

question 11

Multiple Choice

Which of the following is LEAST likely to result in above-average,long-run value creation?

• A)Create new markets through new products.
• B)Attract new customers into the market.
• C)Convince existing customers to buy more of a product.
• D)Gain market share from rivals through product promotion.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production achieved.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost, based on standard rates and actual hours worked.