A Supply Chain Is Broader in Scope Than the Value

question 78

True/False

A supply chain is broader in scope than the value chain, and encompasses all pre- and post-production activity.

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Definitions:

Standard Direct Labor Cost

The predetermined cost of labor directly involved in manufacturing a product, based on expected wage rates and labor efficiency.

Favorable

A term often used in budgeting and financial reporting to indicate results that are better than expected or budgeted.

Unfavorable

A term often used in accounting and finance to describe a situation or variance that results in a worse-than-expected financial outcome.

Total Actual Cost

The complete amount spent on a project or production, including direct and indirect costs up to the current point in time.