Which of the Following Could Be Known by Direct Observation

question 40

Multiple Choice

Which of the following could be known by direct observation?

• A)the mass of the sun
• B)how the sun produces heat and light
• C)the sun's chemical make-up
• D)the color of the sun
• E)the age of the sun

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Definitions:

Rate Variance

The difference between the expected standard cost and the actual cost incurred, calculated for direct labor rate, overhead rate, or material price.

Standard Direct Labor-Hours

The estimated hours required to produce a units based on standard efficiency and productivity levels.

Labor Efficiency Variance

The difference between the actual hours worked to produce a good or service and the standard hours expected, multiplied by the standard labor rate.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating overhead.