If It Is to Be Most Useful for Control Purposes

question 27

Multiple Choice

If it is to be most useful for control purposes, what variance should be reported to the supervisor responsible for the number of pounds of corn syrup used in the manufacture of a candy bar?

• A) raw material price variance, expressed in cents per pound.
• B) raw material usage variance, expressed as a total cost for the month.
• C) raw material usage variance, expressed in total pounds for the month.
• D)raw material usage variance, expressed in total pounds for the week.

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Definitions:

Conjunction

In logic and grammar, it refers to the combination of two statements or clauses linked in such a way that both must be true for the combined statement to be true.

Chess Set

A collection of 32 chess pieces, including kings, queens, bishops, knights, rooks, and pawns, used in the game of chess along with a chessboard.

Probability

A measure of the likelihood or chance that a certain event will occur, which varies between 0 (impossible) and 1 (certain).

Coin Flip

A basic randomization method used to determine outcomes by flipping a coin.