Which of the Following Best Describes the Effect on Direct

question 117

Multiple Choice

Which of the following best describes the effect on direct labor when management adopts a just-in-time environment?

• A) Workers typically perform one function.
• B) The environment becomes more labor intensive.
• C) Each employee runs a single machine.
• D) Workers are often cross-trained to perform more than one function.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.

Variable Manufacturing Overhead

Indirect manufacturing costs that vary with the production volume, such as utilities for machinery.

Standard Costs

Pre-determined or estimated costs used for planning and control purposes, often used to measure performance by comparing them with actual costs.

Direct Labour

The wages and other compensation paid to employees who are directly involved in producing goods or providing services.