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.

---

Definitions:

Current Ratio

A financial metric that evaluates a company's ability to pay off its short-term liabilities with its current assets.

Short-Term Debt-Paying Ability

Refers to a company's capability to meet its short-term financial obligations as they come due.

Liquidity

A measure of how easily assets can be converted into cash without significant loss in value, important for meeting short-term obligations.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations on outstanding debt.