Respond that the following statements are TRUE or FALSE: 1) Companies use techniques like time-and-motion studies, and
Question:
Respond that the following statements are TRUE or FALSE:
1) Companies use techniques like time-and-motion studies, and consult industry "best practices" when developing standards. This is referred to as benchmarking.
2) The static budget is used to compute flexible budget variance or price and efficiency variances.
3) Only unfavorable variances should be investigated, if substantial, to determine their causes.
4) A favorable direct materials cost variance occurs when the actual direct materials costs incurred is less than the standard direct materials cost.
5) A favorable variance of direct materials cost occurs when the actual direct materials cost incurred is more than the standard direct materials cost determined.
Statistics For The Life Sciences
ISBN: 9780321989581
5th Edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner