Which of the Following Might Cause a Variable Overhead Efficiency

question 80

Multiple Choice

Which of the following might cause a variable overhead efficiency variance?

• A)using a poor quality material that needs more labour time to meet production standards
• B)not taking a quantity discount
• C)paying more than the standard rate for labour
• D)increasing the pricing of the materials

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Definitions:

Substantial Performance

A legal concept that indicates a party has fulfilled enough of its contractual obligations to warrant payment or consideration, even if minor details remain uncompleted.

Promise to Build a House

An agreement, typically formal and legally binding, where one party commits to constructing a residential dwelling for another.

Constructive Condition

An implied condition in contracts that must be met for the parties' performance obligations to arise, even if not explicitly stated.

Implied-In-Law Condition

A condition in a contract created by the court to ensure fairness, which is not explicitly stated in the contract itself.