Improvements in Information-Gathering Technology Make It Possible to Consider More

question 232

Multiple Choice

Improvements in information-gathering technology make it possible to consider more and more costs as:

• A)direct costs.
• B)fixed costs.
• C)indirect costs.
• D)variable costs.

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Definitions:

Quality Raw Materials

High-standard, unprocessed or minimally processed inputs used in the production of goods, directly affecting the quality of the finished product.

Labour Time Standard

A benchmark or norm established for the amount of time required to perform a specific task or activity under normal working conditions.

Direct Material Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost.

Direct Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard wages paid for that labor.