Satisfying the Service Needs of Accounts by Telephone Is Not

question 93

True/False

Satisfying the service needs of accounts by telephone is not recommended for salespeople despite in cost reductions.

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Definitions:

Direct Labor-Hours

The cumulative hours put in by workers directly engaged in manufacturing products or delivering services.

Labor Rate Variance

The variance between the real labor costs and the projected or normative labor costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on output levels.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standard prices and quantities.