Environmental Changes or Shifting Consumer Preferences Often Force a Firm

question 115

True/False

Environmental changes or shifting consumer preferences often force a firm to rethink its positioning strategy.

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Definitions:

Total Variance

The overall difference between planned or standard costs and the actual costs incurred.

Total Labor Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor over a period.

Total Overhead Variance

The difference between actual overhead costs incurred and overhead costs allocated to production, based on standard rates, during a specific period.

Direct Labor Price Variance

A measure of the difference between the actual cost of direct labor and the standard cost of direct labor multiplied by the actual hours worked.