Which of the Following Is Not an Ingredient for Controlling

question 103

Multiple Choice

Which of the following is not an ingredient for controlling labour cost in services?

• A) accurate scheduling of labour-hours to assure quick response to customer demand
• B) an on-call labour resource that can be added or deleted to meet unexpected demand
• C) contract overseas labour to obtain a lower wage scale
• D) flexibility of individual worker skills that permits reallocation of available labour
• E) flexibility in rate of output or hours of work to meet changing demand

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Definitions:

Fixed Manufacturing Overhead

The portion of total manufacturing overhead costs that do not vary with the level of production or output.

Work in Process

Inventory account containing goods that are in the manufacturing process but are not yet complete.

Standard Costs

Predetermined or budgeted costs used for cost control and decision-making, serving as a benchmark for measuring performance.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, reflecting changes in material prices.