Most Batch and Job Shop Operations Have Throughput Ratios of 90

question 32

True/False

Most batch and job shop operations have throughput ratios of 90 to 100%.

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Definitions:

Direct Labor Variances

The difference between the actual and standard labor costs incurred by a business during a specific period.

Direct Labor Costs

The wages and benefits paid for labor that is directly involved in the production of goods.

Property, Plant, and Equipment

Long-term tangible assets that a company uses in its operations and that are expected to provide benefits for more than one year.

Standard Cost

A predetermined cost of manufacturing a product or providing a service, under normal conditions, which serves as a benchmark for measuring performance.