Which Variance Is Directly Impacted If a Worker Drops the Raw

question 89

Multiple Choice

Which variance is directly impacted if a worker drops the raw material during production and the raw material must be discarded?

• A)Materials quantity variance
• B)Materials price variance
• C)Labor rate variance
• D)Labor efficiency variance

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Definitions:

Revenue Recognition Rules

guidelines that determine when and how revenue is recognized and recorded in the financial statements.

Sales Discounts

Reductions in the amount owed by a customer, usually offered as an incentive for early payment.

Single-Step Income Statement

A simplified income statement that calculates net income by subtracting total expenses from total revenues with a single calculation.

Total Expenses

The sum of all costs and expenses incurred by a business during a specific period of time.