Which of the Following Isn't a Criteria Used to Determine

question 114

Multiple Choice

Which of the following isn't a criteria used to determine whether a unitary relationship exists?

• A) Functional integration.
• B) Centralized management.
• C) Economies of scale.
• D) Consolidated return status.

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Definitions:

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product or providing a service, which are directly attributable to the cost of creating that product or service.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost, indicating how well labor resources are managed.

Direct Labor-Hours

The cumulative hours put in by workers who are directly engaged in the manufacturing process.

Standard Labor Rate

The predetermined cost per hour for labor, used in budgeting and costing calculations.