Bob Chum Is the Sales Manager at Folding Squid Technologies

question 60

Multiple Choice

Bob Chum is the sales manager at Folding Squid Technologies.At lunch with the company CEO,he pulled out a ______ that showed that recent deliveries had raised inventory levels enough to meet current sales quotas.

• A)purchase order
• B)blanket purchase order
• C)receiving report
• D)debit memo
• E)credit memo

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Definitions:

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected, multiplied by the standard labor rate.

Direct Labour Used

The total effort, measured in hours or costs, of workers directly involved in the manufacturing process of a product.

Variable Manuf. Overhead

Costs that vary with production volume, such as utilities and materials used in manufacturing.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.