A Labour Efficiency Variance Resulting from the Use of Poor

question 159

Multiple Choice

A labour efficiency variance resulting from the use of poor quality materials should be charged to:

• A) the production manager.
• B) the purchasing agent.
• C) manufacturing overhead.
• D) the engineering department.

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Definitions:

Monthly Salary

Regular payment from an employer to an employee, typically spread over a month, for performing agreed-upon professional tasks.

Commission

A fee or percentage of a transaction value paid to agents or employees for conducting a piece of business or a service.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Commission Only

A payment model where compensation is based solely on the amount of sales or transactions generated, with no base salary.