A Continuous Improvement Budgeted Cost, in Terms of Variances and Standard

question 5

Multiple Choice

A continuous improvement budgeted cost, in terms of variances and standard costs

• A)is held constant regardless of external factors, thus enabling management to isolate internal variance factors.
• B)is successively reduced over succeeding time periods.
• C)ensures that managers will avoid unfavourable materials (or labour)variances that are due to external factors.
• D)is easier to achieve for older, more established production runs, than for new products.
• E)is achieved as easily for older, more established production runs, as for for new products.

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Definitions:

Punitive Damages

Financial compensation awarded to a plaintiff to punish the defendant for egregious misconduct and deter future similar acts.

Mitigate Damages

A legal principle requiring a party suffering loss to take reasonable action to minimize the extent of the damage resulting from a breach of contract or tort.

Consequential Damages

Refers to damages that are not directly caused by a breach of contract but result from the particular circumstances of the plaintiff.

Breach of Contract

Occurs when one party in a contract fails to fulfill their obligations as per the agreement, thus violating the contract.