Labour Efficiency Variances May Be Caused by

question 27

Multiple Choice

Labour efficiency variances may be caused by

• A)the use of highly skilled workers.
• B)frequent machinery breakdowns.
• C)the use of marginally skilled workers.
• D)all of the above.

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Definitions:

Capital Budgeting

The process by which a business evaluates and plans for significant investments in projects or assets.

Useful Life

The estimated duration of time over which an asset is expected to be usable by its owner for its intended purpose.

Cash Inflows

Money received by a business from various sources, including sales, investments, and financing activities.

Project Profitability Index

A financial metric used to evaluate the attractiveness of a project or investment, calculated as the present value of future cash flows divided by the initial investment.