Examlex
Which of the following statements is most accurate?
Labour Rate Variance
Labour rate variance is the difference between the actual hourly wage paid to workers and the standard wage rate expected, indicating variations in labor cost.
Material Quantity Variance
The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.
Standard Costing
An accounting method that uses predetermined costs for product costing, performance evaluation, and decision making.
Labour Efficiency Variance
A metric that measures the difference between the actual labor hours used in production and the standard or expected hours, often indicating labor performance.
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