A generic and frequently used measure of the productivity of resources is the: A

Question

A generic and frequently used measure of the productivity of resources is the:

A) Cost of goods sold

            B)   Cost per unit

            C)   Total cost

            D)   Variance

            E)   None of the above

Which of the following statements is not true about variance analysis?

            A)   Variance analysis is used to help isolate costs that are not what they should be

            B)   Almost any type of resource can be analyzed using variance analysis

            C)   Variance analysis drives many operations actions because it facilitates the control of various contributors of cost

            D)   Unfavorable variances often provide the catalyst for productivity improvements

            E)         The actual quantity at the standard price minus the standard quantity at the standard price provides the total variance

In breakeven analysis, the point of intersection between the cost curves of two alternatives represents

A)   The volume at which all costs are minimized

            B)   The volume at which the cost of the low-cost alternative is minimized

            C)   The volume at which the cost of the high-cost alternative is minimized

            D)   The optimal production volume

            E)   The volume at which the costs of the two alternatives are the same

Explanation / Answer

A generic and frequently used measure of the productivity of resources is the:

B)   Cost per unit

product or services become objects . cost per unit is calculated by deviding total cost involved in producing units by number of units produced. it is majorly used for measuring productivity of resources.

Which of the following statements is not true about variance analysis?

E)         The actual quantity at the standard price minus the standard quantity at the standard price provides the total variance

The actual quantity at the standard price minus the standard quantity at the standard price provides the usage of variance.

The actual quantity at the actual price minus the standard quantity at the standard price provides the total variance

so and is E.

In breakeven analysis, the point of intersection between the cost curves of two alternatives represents

E)   The volume at which the costs of the two alternatives are the same.

It is analysis to show the point at which revenue is equals to costs involved in production. Break-even analysis helps to know margin of safety means how much amount of revenues exceed the cost or the break-even point. The intesection between cost curves explains voulume or no of units at which cost of production are same for both alternatives. so ans is (e)

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