Which of the Following Statements Is NOT Correct

question 217

Multiple Choice

Which of the following statements is NOT correct?

• A) If the denominator level of activity and the standard hours allowed for the output of the period are the same, then there is no volume variance.
• B) If the denominator level of activity is greater than the standard hours allowed for the output of the period, then the volume variance is unfavourable.
• C) If the denominator level of activity is greater than the standard hours allowed for the output of the period, then the volume variance is favourable.
• D) The volume variance is the most appropriate measure of the utilization of plant facilities.

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Definitions:

Transport

The movement of goods or people from one location to another, typically involving vehicles such as trucks, planes, or ships.

Transportation Network Design

The planning and optimization of routes and modes of transport to move goods efficiently from origin to destination.

Intermediate Transit Point

A location, such as a warehouse or distribution center, where goods stop temporarily during their journey from the manufacturer to the end customer.

Central DC

Central DC, or Central Distribution Center, is a critical logistics facility that centralizes warehousing and distribution activities for efficient goods movement.