An Unfavourable Labour Quantity Variance May Be Caused by

question 68

Multiple Choice

An unfavourable labour quantity variance may be caused by

• A)paying workers higher wages than expected.
• B)paying workers a bonus at year end.
• C)worker fatigue or carelessness.
• D)higher pay rates mandated by union contracts.

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Definitions:

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market equilibrium.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded at a given price.

Quantity Demanded

The overall quantity of a product or service that buyers are ready to buy at a specific price.