If the Standard to Produce a Given Amount of Product

question 96

True/False

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17, the rate variance was $1,200 favorable.

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Definitions:

Just-In-Time (JIT) Inventory Systems

A supply chain management strategy that aims to reduce inventory costs by receiving goods only as they are needed in the production process.

Transportation Management

The planning, execution, and oversight of moving goods and services from origin to destination efficiently and effectively.

Value Chain Optimization

The process of increasing the efficiency and effectiveness of a value chain, involving activities that add value to a product or service from its conception to delivery to the consumer.

Logistics

The detailed coordination and implementation of complex operations, often referring to the movement and storage of goods from point of origin to point of consumption.