What Variance Does the Difference Between the Actual Cost of the Direct

question 74

Multiple Choice

What variance does the difference between the actual cost of the direct labour hours worked and the planned cost of the direct labour hours measure?

• A)The direct labour efficiency variance.
• B)The direct labour rate variance.
• C)The total direct labour variance.
• D)None of the above.

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Definitions:

Current Assets

Properties that an organization foresees turning into cash, selling, or expending over the course of a year or its operating cycle, whichever timeframe is more extended.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash through customer payments.

Long-Term Liabilities

Financial obligations of a company that are due beyond one year, including bonds payable, long-term loans, and lease obligations.

Correcting Entries

These are journal entries made to correct errors found in the accounting records.