Spot Checks

question 88

Multiple Choice

Spot checks:

• A) measure presence only.
• B) monitor the effort of workers precisely.
• C) are the same as spot markets.
• D) must be frequent enough to induce workers not to risk getting caught shirking.

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Definitions:

Indirect Labor

Labor costs not directly associated with the production of goods or services, such as administrative and support personnel.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting and variance analysis.

Direct Labor Hours

Direct Labor Hours are the total hours worked by employees directly involved in the production of goods or services.

Budgeted Costs

Anticipated expenses for a specific period of time, used for planning and control purposes.