An Unfavorable Variance

question 26

Multiple Choice

An unfavorable variance:

• A)may suggest investigation is needed
• B)is conclusive evidence of poor performance
• C)demands that standards be recomputed
• D)indicates continuous improvement is needed

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Definitions:

Transformation Process

The series of actions or operations conducted in manufacturing or service environments that convert inputs into finished products or outcomes.

Outputs Produced

Refers to the quantity or volume of products or services generated by a business or production process.

Inputs

Resources such as raw materials, labor, and capital that are utilized in the production process to create goods or services.

Layout Design

The arrangement of physical facilities or space, such as machinery, equipment, or office furniture, to optimize workflow or use of space.