When the Lowell Factory System Began

question 9

Multiple Choice

When the Lowell factory system began,

• A) craftsmen were part of the production system.
• B) workers were fairly well paid and lived in supervised dormitories.
• C) workers had few benefits outside of a set wage scale.
• D) the workday ended when production quotas were met.
• E) workers rarely stopped working in the mills until retirement.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted or standard amount expected to be spent.

Power Cost

The expense associated with the consumption of electrical power used in the operations of a business or manufacturing process.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit.

Raw Materials Price

The cost of raw materials required in the manufacturing process, a critical factor in the overall production cost and pricing strategy.