A Favorable Direct Materials Cost Variance Occurs When the Actual

question 134

True/False

A favorable direct materials cost variance occurs when the actual direct materials cost incurred is less than the standard direct materials cost.

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Definitions:

Organic Forms

Organizational structures that are flexible, decentralized, and characterized by less formal rules and procedures, often adapting quickly to changes.

Bureaucratic Structures

Organizational forms that are characterized by a hierarchical arrangement of jobs, reliance on formal rules and regulations, and a clear distinction of labor.

Environmental Uncertainty

A lack of information regarding what exists in the environment and what developments may occur.

Strategic Alliance

A partnership between two or more companies to pursue a set of agreed upon objectives while remaining independent organizations.