Typical Measures of Operating Performance Are

question 23

Multiple Choice

Typical measures of operating performance are

• A) profitability, market performance and problem solving
• B) profitability, financial position and market performance
• C) profitability, financial position and sustainability
• D) profitability, market performance and sustainability

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Definitions:

Direct Material Standards

Standard costs set for the quantity and price of materials required for a manufacturing process.

Purchases Variance

A measurement of the difference between the actual cost of materials and the expected, or standard, cost.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the standard costs for the actual production volume.

Standard Machine-Hours

The estimated number of hours that a machine is expected to operate to complete a specific task under standard conditions.