A Favorable Production Volume Variance Indicates ________

question 51

Multiple Choice

A favorable production volume variance indicates ________.

• A) an effective use of manufacturing capacity
• B) an ineffective use of manufacturing capacity
• C) that the use of manufacturing capacity is lower than expected
• D) that the use of manufacturing capacity is higher than expected

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Definitions:

Mass Customization

Mass customization is a manufacturing and marketing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Self-Service

A business model or service design that allows customers to perform services for themselves without direct assistance from employees.

Mass Service

A type of service operation characterized by serving a large number of customers with standardized services, often with little to no customization.

Service Factory

A business model that combines production and service provision, focusing on delivering manufactured goods along with value-added services.