The Process of Creating Value for Customers Is the Result

question 71

Multiple Choice

The process of creating value for customers is the result of nine activities that form a

• A)value chain.
• B)capitalist operation.
• C)profitable business.
• D)information system.

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Definitions:

Volume Variance

A measure used to evaluate the difference between the expected and actual production volumes.

Predetermined Overhead Rate

A rate calculated before a period begins, based on estimated overhead costs and activity levels, for assigning manufacturing overhead to products.

Variable Component

A portion of costs that varies directly with the level of production or operation activity.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services, based on a planned amount of cost and activity level.