Merely Fine-Tuning the Execution of a Company's Existing Strategy Normally

question 72

Multiple Choice

Merely fine-tuning the execution of a company's existing strategy normally requires

• A)big shifts of resources from one area to another.
• B)a larger allocation of resources to the effort.
• C)trimming costs and shifting resources to activities that have a higher priority.
• D)creativity in finding ways for cost reductions, i.e. ways to do less with less.
• E)cost-cutting in key value chain activities.

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of labor per hour and the standard cost, multiplied by the total hours worked, used to assess labor cost management.

Standard Hours

Standard hours refer to the set amount of time expected to complete a task or job based on efficiency standards.

Work in Process Inventory

Represents goods that are partially completed in the manufacturing process, not yet ready for sale.

Direct Labor Variances

The difference between the estimated cost of direct labor and the actual direct labor cost incurred.