According to the Second Development Dimension, What Is the Outcome

question 35

Multiple Choice

According to the second development dimension, what is the outcome when a manager concentrates only on the employees who are not performing up to standard?

• A) The performing employees will continue to improve their performance.
• B) Those employees will begin performing up to standard.
• C) The good employees will start performing negatively.
• D) The employees who are underperforming will ignore the feedback.
• E) None of the above.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, weighted by the standard labor rate.

Labor Rate Variance

The difference between the actual hourly labor cost and the standard or budgeted hourly labor cost, multiplied by the total hours worked.

Materials Quantity Variance

The variance between the real amount of materials consumed in the production process and what was anticipated, calculated by the standard cost for each unit.

Materials Price Variance

Difference between the actual cost of material and the standard cost multiplied by the amount of material purchased.