Why Do People Work Less Hard When They Are Working

question 108

Multiple Choice

Why do people work less hard when they are working with other people?

• A) It's a matter of laziness
• B) It's a matter of fairness
• C) It's a matter of a natural tendency in groups
• D) It's a matter of the success of the group

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Definitions:

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate.

Standard Labor Rate

The predetermined hourly wage rate used in cost accounting to calculate labor costs.

Standard Hours Allowed

The number of hours that should have been worked for the actual production achieved, based on pre-established standards.

Standard Costing System

A cost accounting method that assigns a fixed cost to inventory and measures variances against actual production costs to manage business expenses.