The Use of an Inexperienced Worker Instead of an Experienced

question 159

True/False

The use of an inexperienced worker instead of an experienced employee can result in a favorable labor price variance but probably an unfavorable quantity variance.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing one option over another.

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Opportunity Cost

The expense incurred from not choosing the optimal alternative available during decision-making.

College Tuition

The fee that institutions of higher education charge for enrollment and instruction.