Which of the Following Is the Basic Question to Ask

question 35

Multiple Choice

Which of the following is the basic question to ask to improve quality and ensure that value is added by each technique and at each stage in the compensation system?

• A)Who should do the activity?
• B)How should the technique be redesigned?
• C)Does each specific activity directly contribute to our objectives?
• D)Should the activity be done in-house, or can others do it more effectively?

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Definitions:

Produced

Refers to items that have been completed and are ready for sale or distribution, typically finished goods in a manufacturing context.

Total Cost

The complete cost of producing or acquiring goods or services, including variable and fixed costs.

Direct Materials Price Variances

The difference between the actual cost of direct materials and the expected (or standard) cost, used to assess changes in material costs over time.

Quantity Variances

The difference between the expected quantity of materials, labor, or overhead and what was actually used.