The Implementation and Initial Operation Phase of a Systems Study

question 117

True/False

The implementation and initial operation phase of a systems study is also known as the "action" phase of a systems study.

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Definitions:

Direct Materials Quantity Variance

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

Per-unit Standards

Per-unit standards refer to the predetermined costs or metrics applied to individual units of production, aiding in budgeting and performance evaluation.

Pounds

A unit of weight commonly used in the British imperial and United States customary systems.

Materials Quantity Variance

Materials quantity variance is the difference between the actual quantity of materials used in production and the expected amount, multiplied by the standard cost of those materials, indicating efficiency in usage.