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Sandra tried to explain the problem she was having, but her manager, Tabitha, kept interrupting her. Finally, in frustration, Sandra returned to her workstation, even though Tabitha never did grasp the key points that Sandra was attempting to communicate. This lack of communication is an example of
Efficiency Variances
These variances measure the difference between the actual input used to produce a good or service and the standard input expected to be used, showing how efficiently resources are utilized.
Rate Variances
Differences between actual rates paid for inputs and the standard expected rates, often analyzed in cost accounting for labor, materials, and overhead costs.
Variable Overhead
Costs that vary with production volume, such as utilities for a factory, which do not remain constant as production levels change.
Materials Quantity Variance
Materials Quantity Variance is the difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit, indicating efficiency in material usage.
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