Machine-Hours Is a More Economically Plausible Cost Driver of Machine

question 143

True/False

Machine-hours is a more economically plausible cost driver of machine maintenance than number of direct manufacturing labor-hours.

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Definitions:

Performance Deviations

Differences between actual performance and planned or expected outcomes, indicating areas that may require adjustments or improvements.

Corrective Action

An action taken to rectify or eliminate the cause of a detected non-conformance, defect, or other undesirable situation to prevent recurrence.

Measure Actual Performance

Measuring actual performance involves assessing the real outputs or results of processes, individuals, or organizations against planned or expected outcomes.

Control Process

A systematic effort to set performance standards, measure actual performance, and take corrective action as necessary.