How Do Standard Cost Systems Enhance Operational Control

question 114

Multiple Choice

How do standard cost systems enhance operational control?

• A)through efficiency variances, which indicate the need for corrective action
• B)through price variances, which indicate the need for better spending control
• C)through standard costs, which indicate the desired cost of a unit of input
• D)through actual costs, which indicate the price received for units sold

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Definitions:

Equal Pay Act

Legislation requiring that men and women be given equal pay for equal work in the same establishment.

Seniority System

A workplace policy in which decisions on promotions, layoffs, and other job-related conditions are made based on an employee's length of service.

Job Ranking Method

A simple system of job evaluation used to rank jobs in an organization in order of their importance or complexity.

Factor Analysis Method

A statistical technique used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.