When Using Management by Exception,which of the Following Variances Would

question 102

Multiple Choice

When using management by exception,which of the following variances would NOT affect the production manager?

• A)direct materials efficiency
• B)variable overhead efficiency
• C)direct labor cost
• D)direct labor efficiency

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Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including payment periods, interest rates, and penalties for late payment.

Perpetual Inventory System

An accounting method that continuously updates inventory records after each purchase or sale.

Discount Period

The timeframe within which a payment can be made at a discounted rate, often used in sales transactions to encourage early payment.

Gross Profit

The financial metric that represents the difference between sales revenue and the cost of goods sold, excluding other expenses and overhead.