Trial of a New Product

question 18

Multiple Choice

Trial of a new product:

• A)involves its large scale usage.
• B)is only done under laboratory conditions.
• C)permits the customer to verify claims about the product.
• D)must have no "cost" associated with it.

---

Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost.

Labor Standards

Benchmarks or criteria set for the amount of time and effort required to perform tasks efficiently and effectively.

Direct Labor-Hours

The total hours worked directly on the production of goods or provision of services, often used as a basis for assigning labor costs to products.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to complete a task, multiplied by the standard labor rate.