A statistical control chart is best used for determining:
A)direct-material price variances.
B)direct-labor variances.
C)whether a variance is favorable or unfavorable.
D)who should be held accountable for speciﬁc variances.
E)whether a particular variance should be investigated.

Question

Quizplus · Accepted Answer

Statistical control charts can help identify whether a particular variance is within acceptable limits or if it should be investigated further. This makes it a useful tool for identifying areas where performance needs to be improved or where there are potential cost savings to be made. Control charts are not used for determining who should be held accountable for specific variances or whether a variance is favorable or unfavorable, as these are largely strategic decisions that require in-depth analysis and judgment. Additionally, control charts are not designed to track direct-material price variances or direct-labor variances, as these are typically tracked through other performance metrics and analyses.

A Statistical Control Chart Is Best Used for Determining