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Direct Labour Efficiency Variance Can Be Analyzed Further into Mix

question 144

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Direct labour efficiency variance can be analyzed further into mix and yield variances if more than one class of direct labour that are good substitutes is used in operations.


Definitions:

Acquisition Date

The date on which the acquirer obtains control of the acquiree.

General Reserve

Funds set aside out of profits for the future protection of the business and to strengthen its financial position.

Retained Earnings

The portion of a company's profits not distributed to shareholders but instead reinvested in the business or kept as reserve.

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