Which Variance Is Directly Impacted If the Employees Who Build

question 136

Multiple Choice

Which variance is directly impacted if the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired?

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

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Definitions:

Compensating Differential

The additional amount of income that an employee requires to accept a job that entails less desirable aspects, such as longer hours or higher risks.

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Unskilled Labor

Labor that requires no specialized skills, education, or training for its performance.

Productivity Gains

Increases in the amount of output produced per unit of input, reflecting improvements in efficiency, technology, or processes.