The ________ Variance "Measures Whether the Quantity of Direct Labor

question 39

Multiple Choice

The ________ variance "measures whether the quantity of direct labor used to make the actual number of outputs is within the standard allowed for that number of outputs".

• A)production volume
• B)overhead flexible budget
• C)rate
• D)efficiency

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Definitions:

Percentage-of-Completion Method

An accounting technique used to recognize revenue and expenses of long-term projects proportionally to the work completed to date.

Long-Term Contracts

Agreements that establish the terms for ongoing services or project work that lasts over an extended period, often involving incremental delivery and payment schedules.

Contract Loss

A financial loss encountered in a contract when the total costs exceed the revenue earned from the contract, typically recognized in construction or long-term projects.

Percentage-of-Completion Method

An accounting method used to recognize revenue and expenses of long-term contracts in proportion to the work completed.