A Materials Efficiency Variance Can Be Caused by All of the Following

question 127

Multiple Choice

A materials efficiency variance can be caused by all of the following except:

• A)Actual output volume of the period (i.e. ,units produced).
• B)Performance of the workers in using the materials.
• C)Quality of the materials.
• D)Skill level of the workers using the materials.
• E)Inadequate employee supervision.

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Definitions:

Resources Allocation

The process of assigning available resources among various uses in an economy or organization to maximize the efficiency of those resources.

Firms Efficiency

The degree to which a company utilizes its resources effectively to produce goods and services and maximize profit.

Pareto Optimality

A situation where resources are distributed in such a way that improving the situation of any single person would lead to the detriment of at least one other person.

Voluntary Exchange

An economic transaction where parties trade goods or services by mutual agreement without coercion.