A Direct Labor Cost Variance Can Be Divided into Price

question 199

True/False

A direct labor cost variance can be divided into price and quantity variances, which are almost always called controllable and volume variances.

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Definitions:

Ansoff Matrix

A framework used to identify a company’s strategic options for growth by assessing products and markets.

Markov Model

A statistical model that predicts future states based on the current state, often used in machine learning and economic forecasting.

Diversification Strategy

A business approach that involves entering into new markets or introducing new products or services to spread risk and opportunities for growth.

Reduce Risks

Strategies or actions taken to lower the probability of loss or the impact of adverse outcomes.