Which of the Following Would Not Lend Itself to Applying

question 152

Multiple Choice

Which of the following would not lend itself to applying direct labor variances?

• A)Computer help desk operator
• B)Administrative assistant
• C)Customer service personnel
• D)Telemarketer

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Definitions:

Setup Cost

A fixed cost incurred each time a production process or activity is initiated, which includes costs associated with preparing equipment and facilities for manufacturing.

Carrying Cost

The expenses associated with storing and maintaining inventory, including warehousing, insurance, and spoilage costs.

Safety Stock

Additional inventory kept to prevent stockouts, typically used as a buffer against demand variability or supply chain disruptions.

Lead Time

The total time taken from the initiation of a process or project to its completion.