The Arrival of New Manufacturing Techniques Such as Automation,flexible Manufacturing

question 63

Multiple Choice

The arrival of new manufacturing techniques such as automation,flexible manufacturing systems,and cluster or cell manufacturing has:

• A)Emphasized the importance of direct labor variances.
• B)Not had an effect on the importance of direct labor variances.
• C)De-emphasized the importance of direct labor variances.
• D)Made direct labor variances obsolete.
• E)Eliminated the need to calculate and report direct materials variances.

Understand the impact of unused capacity on operational efficiency and cost.

Determine product margins using activity-based costing methodologies.

Analyze the allocation of manufacturing overhead using plantwide and activity-based costing rates.

Calculate the cost of serving customers and processing orders in an activity-based costing system.

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Definitions:

Natural Logarithm

The logarithm to the base e (where e is approximately equal to 2.718281828), often used in mathematics and engineering.

Logistic Regression

A statistical method used for predicting a binary outcome from one or more predictor variables, modeling the probability of occurrence of an event by fitting data to a logistic curve.

Indicator Variable

An indicator variable is a numerical variable used in statistics that adopts a value of 1 if a certain condition is met and 0 if it is not.

Binomial Probability

The probability of obtaining a fixed number of successful outcomes in a fixed number of trials in a binomial experiment.