If the Labor Quantity Variance Is Unfavorable and the Cause

question 45

Multiple Choice

If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor the responsibility rests with the

• A) sales department.
• B) production department.
• C) budget office.
• D) controller's department.

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Definitions:

Constrained Resource

Refers to the most limited resource within a production process or system that restricts its output or throughput.

Processing Further

Additional operations or activities undertaken on a product after the initial manufacturing process to increase its value.

Financial Advantage

The benefit obtained from making certain financial decisions or investments, often resulting in savings, earnings, or a stronger financial position.

Intermediate Products

Goods that are in a middle stage of production, not yet final products, but also not raw materials; used as input in the production of other goods.