A Favorable Direct Labor Efficiency Variance Might Indicate That

question 47

Multiple Choice

A favorable direct labor efficiency variance might indicate that

• A)higher skilled workers were used that performed the task slower than expected.
• B)higher skilled workers were used that performed the task faster than expected.
• C)lower skilled workers were paid a higher wage than expected.
• D)lower skilled workers were paid a lower wage than expected.

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Definitions:

Opera Tickets

Opera tickets are passes purchased for the purpose of gaining entry to an opera performance.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Relatively Elastic

Describes a situation where a small change in price leads to a larger change in the quantity demanded or supplied.

Decrease in Price

A reduction in the cost of a good or service, which can influence consumer demand and potentially market dynamics.