All of the Following Are Financial Objectives of Responsibility Centres

question 38

Multiple Choice

All of the following are financial objectives of responsibility centres EXCEPT

• A) operations budgets.
• B) profit targets.
• C) customer satisfaction.
• D) return on investment.

---

Definitions:

Direct Labor Efficiency Variance

A financial metric that analyzes the difference between the actual hours worked and the standard hours expected for the production achieved.

Labor Per Unit

The amount of labor cost incurred to produce one unit of production, a measure of efficiency and cost control.

Direct Materials Quantity Variance

Direct materials quantity variance is a measure of the difference between the estimated amount of materials supposed to be used in production and the actual amount used, reflecting efficiency in material usage.

Material Costing

The process of determining the costs associated with the raw materials used in the production of goods or services.