It Is a Systematic Error to Attribute Failures or Mistakes

question 5

Multiple Choice

It is a systematic error to attribute failures or mistakes to:

• A)one-time occurrences.
• B)external causes.
• C)freak accidents.
• D)internal causes.

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Definitions:

Direct Labour

The workforce directly involved in the manufacturing of goods or provision of services, whose wages are directly associated with specific products or services.

Labour Rate Variance

The difference between the actual cost of labor and the budgeted cost, based on hours worked and the rates paid.

Standard Direct Labour Rate

refers to the pre-determined cost per hour for direct labor, used in budgeting and measuring labor cost efficiency.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain number of units, multiplied by the standard hourly wage rate.