Under What Condition(s) Might a Favorable Variance Be Considered Unfavorable

question 48

Multiple Choice

Under what condition(s) might a favorable variance be considered unfavorable?
I.When a manager overproduces to fully utilize labor in a non-bottleneck department
II.When a manager buys a better quality materials at a cheaper price

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

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Definitions:

Pareto Analysis

A decision-making technique that involves separating a limited number of input factors that have a significant impact from many that have a minor impact, based on the Pareto Principle.

Unsatisfying Hotel

A hotel that does not meet guests' expectations in terms of services, amenities, or other aspects of their stay.

Pareto Analysis

A statistical technique used for decision-making, based on the principle that a small number of causes are responsible for a large percentage of the effect.

Unsatisfying Hotel

A hotel that fails to meet the expectations or satisfaction levels of its guests.