Which of the Following Statements Is True of Companies That

question 31

Multiple Choice

Which of the following statements is true of companies that employ differentiation strategies?

• A)They primarily focus on efficient production.
• B)They only train employees in specific required skill areas.
• C)They want their employees to be risk averse.
• D)They want their employees to take a balanced approach to process and results.
• E)They expect their employees to exhibit role behaviors that are relatively repetitive.

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Definitions:

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead incurred due to variance in production volume.

Standard Fixed Overhead Cost

The predetermined amount of fixed costs that are expected to be incurred to support operations, typically fixed for a specific period.

Direct Materials Quantity Variance

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

Price Variance

The difference between the expected price and the actual price paid for an item.