Which of the Following Affects the Company's Ability to Make

question 171

Multiple Choice

Which of the following affects the company's ability to make on-time deliveries?

• A) return on investment
• B) product's price
• C) warranty claims
• D) production cycle time

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Definitions:

Practical Standards

Realistic expectations for performance or output that take into account potential variances and are used for benchmarking and measuring actual performance.

Standard Costing

Standard costing involves assigning a fixed cost to production and inventory for the purpose of budgeting and performance evaluation, allowing companies to identify variances and control costs.

Machine Breakdown

The failure of a machine to function, causing a halt in production or operations.

Material Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.