Efficiency Means Doing the Right Things to Create the Most

question 35

True/False

Efficiency means doing the right things to create the most value for the company.

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Definitions:

Actual Results

The real outcomes or final figures that have been achieved by a business after a specific period, which can be compared against forecasts or budgets.

Materials Quantity Variance

An analysis used to assess the discrepancy between the expected amount of materials and the actual amount used, based on standard costs, providing insight into manufacturing efficiency.

Quantity Standard

The expected or established amount of materials, labor, or overhead that should be used for a unit of production or a specific task.

Price Standard

A predetermined cost that should ideally apply to a product or service based on expected efficiency and expense.