A Continuous Improvement Budgeted Cost, in Terms of Variances and Standard

question 5

Multiple Choice

A continuous improvement budgeted cost, in terms of variances and standard costs

• A)is held constant regardless of external factors, thus enabling management to isolate internal variance factors.
• B)is successively reduced over succeeding time periods.
• C)ensures that managers will avoid unfavourable materials (or labour)variances that are due to external factors.
• D)is easier to achieve for older, more established production runs, than for new products.
• E)is achieved as easily for older, more established production runs, as for for new products.

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Definitions:

Inorganic Fertilizer

Fertilizers made from synthetic, chemically produced compounds, commonly used to enhance plant growth and soil fertility.

Gross National Product

The total value of all goods and services produced by a country's residents and businesses, regardless of where the production takes place.

Agriculture

The science, art, and practice of cultivating soil, producing crops, and raising livestock.

Nonrenewable Fossil Fuel Energy

Energy sources like coal, oil, and natural gas that cannot be replenished in a short period and are extracted from the earth's crust.