Which of the Following Trends in Variances May Not Indicate

question 17

Short Answer

Which of the following trends in variances may not indicate an inherent problem? a. Marketing personnel overstating costs to give themselves additional leeway in operations.
B) Repeatedly having unfavorable labor efficiency variances.
C) An unexpected increase in demand.
D) A developing problem in the manufacturing process.
E) Finding mostly favorable variances over time.

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Definitions:

Marginal Output

Marginal Output is the additional quantity of output that is produced by utilizing one more unit of a certain input, holding all other inputs constant, used to assess productivity improvements or decreases.

Diseconomies of Scale

Diseconomies of scale occur when a company or business grows so large that the costs per unit increase, opposite of economies of scale where costs decrease with increasing production.

Economic Growth

A rise in the output of goods and services within an economy over a specific time frame.

Employment Discrimination

The unfair or prejudicial treatment of individuals in the workplace based on race, gender, age, religion, nationality, or other non-merit factors.