This Question: 3 pts 4 of 9 (0 complete)This Quiz: 20 pts po MajorNet Systems is

Question

This Question: 3 pts 4 of 9 (0 complete)This Quiz: 20 pts po MajorNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $145 for each connector and fixed costs of $7,500 per month. MajorNet's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 84 connectors at a total cost of $21,000 MajorNet Systems's managers could set direct labor standards based on O A. continuous improvement. O B. benchmarking O C. time-and-motion studies O D. All of the above.

Explanation / Answer

As there is variance ( i.e difference) in the predicted production and sales and the actual production and sales the company is required to figure out the reasons for the difference. Thus, it should adopt continuous improvement method to help them reduce the cost as well as save the resources. Simultaneously, Benchmarking will help them in proper estimation of requirements and Time and motion study will help in saving storage cost. as it can be seen that the fixed costs are very high, it requires to take action to reduce the same .

Therefore the appropriate answer should be

D)All the above

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.