The Operations Definition Emphasizes Decision,function and Process Elements of the Organization.Briefly

question 10

Essay

The Operations definition emphasizes decision,function and process elements of the organization.Briefly discuss the need to address these fundamental elements.

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Definitions:

Direct Labor Cost

The wages paid to employees who are directly involved in the production of goods or services.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on hours worked and pay rates.

Labor Efficiency Variance

The variance between the actual number of labor hours utilized and the anticipated standard labor hours for the achieved production volume.

Raw Materials Inventory

The stock of materials on hand that are used in the manufacturing process to produce goods.