A Cost Variance Measures the Difference in Quantities of Actual

question 210

True/False

A cost variance measures the difference in quantities of actual inputs used and the standard quantity of inputs allowed for the actual number of units produced.

---

Definitions:

Average Inventory Levels

The mean stock of goods held by a company over a certain period, used to manage inventory efficiently and minimize holding costs.

Materials Requirements Planning

A production planning and inventory control system used to manage manufacturing processes by determining material requirements.

Derived Demand

Demand for a commodity, service, etc., that is a consequence of the demand for something else; for instance, the demand for steel is derived from the demand for automobiles.

Just-In-Time

An inventory strategy that aligns raw-material orders from suppliers directly with production schedules to minimize stock levels.