What Does an Unfavourable Labour Efficiency Variance Indicate

question 198

Multiple Choice

What does an unfavourable labour efficiency variance indicate?

• A) The actual labour rate was higher than the standard labour rate.
• B) The labour rate variance must also be unfavourable.
• C) Actual labour hours worked exceeded standard labour hours for the production level achieved.
• D) Overtime labour was used during the perioD.

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Definitions:

High Barriers

Obstacles that make it difficult for new competitors to enter a market, including high start-up costs, complex regulations, or strong brand loyalty.

Market Entry

The strategy or process involved in introducing a new product or service to a target market.

Unregulated Monopolists

Firms that maintain exclusive control over a particular market or product without any oversight or restrictions from regulatory bodies.

Oligopolistic Markets

Markets dominated by a few large suppliers who have some control over the prices due to the limited number of competitors.