Question 1
Which of the following is an example of nonfinancial performance measure?
◦ percentage of products started and completed without requiring any rework
◦ direct manufacturing labor efficiency variance
◦ direct materials price variance
◦ quantity discounts obtained on order of large quantity
Question 2
Which of the following is true of variance?
◦ Managers should interpret a favorable variance as "good news".
◦ Managers should not simply interpret a favorable variance as good but should understand why the variance occurred.
◦ A small variance or zero variance definitively reveals efficient performance.
◦ Managers' performance must be evaluated solely on single variance.