The Optimal Disaster Recovery Plan in Terms of Cost and Time

question 180

Multiple Choice

The optimal disaster recovery plan in terms of cost and time is where on the disaster recovery cost curve?

• A) Where the two cost effects intersect
• B) When the cost to the company of unavailability of information and technology is high
• C) When the cost to the company of recovering from a disaster over time is high
• D) When the two cost effects are furthest apart

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Definitions:

Efficiency Variance

A measure in cost accounting used to assess the efficiency with which inputs are converted into outputs, often looking at differences in labor or material usage.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a measure for allocating labor costs to products or services.

Variable Overhead

Costs of indirect manufacturing that change with the level of production output, such as utilities for the manufacturing plant.

Efficiency Variance

The difference between the actual amount of input (time, materials, etc.) used in production and the standard amount expected to be used.