The Sales Department Needs to Rely on Information from Operations

question 33

Multiple Choice

The sales department needs to rely on information from operations to understand _________.

• A) inventory
• B) customer orders
• C) demand forecasts
• D) All of these.

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected (or standard) quantity, multiplied by the standard cost per unit.

Standard Quantity

The expected or budgeted quantity of materials, labor, or overhead needed for production, based on norms or standards.

Actual Quantity

The real amount of inputs, such as raw materials or labor hours, consumed in the production process, as opposed to planned or standard quantities.

Standard Price

Standard Price refers to the predetermined cost of goods or services used for budgeting and cost management purposes, often serving as a benchmark for evaluating actual costs.