Which of the Following Actions Is Likely to Result in Inefficiency

question 11

Multiple Choice

Which of the following actions is likely to result in inefficiency when introducing new technology?

• A) Ensuring every team member has precisely the same version of the same technology
• B) Allowing workers to figure out new technology as they go and at their own pace
• C) Ensuring workers know how and when to use technology
• D) Establishing ground rules for using team technology
• E) Establishing ground rules for using technology effectively

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Definitions:

Direct Labor

The cost associated with employees who are directly involved in the production of goods or services.

Direct Labor Efficiency Variance

A measure used in cost accounting to evaluate the difference between the actual hours worked and the standard hours expected for the production achieved.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost of those materials.

DL Wage Variance

The difference between the budgeted wage and the actual wage paid to direct labor employees.