Which of the Following Is the Correct Formula for Measuring

question 49

Multiple Choice

Which of the following is the correct formula for measuring an efficiency variance?

• A) Efficiency Variance = (Actual Quantity + Standard Quantity) - Standard Cost
• B) Efficiency Variance = (Actual Quantity × Standard Quantity) / Standard Cost
• C) Efficiency Variance = (Actual Quantity / Standard Quantity) × Standard Cost
• D) Efficiency Variance = (Actual Quantity - Standard Quantity) × Standard Cost

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Definitions:

Skill Variety

The degree to which a job requires a range of different skills and talents to perform tasks effectively.

Job Characteristics Model

A theory that proposes that any job can be described in terms of five core job dimensions: skill variety, task identity, task significance, autonomy, and feedback, which impact three critical psychological states, leading to enhanced work outcomes.

Task Significance

The degree to which a job has a significant impact on the lives or work of other people either in the immediate organization or in the external environment.

Job Simplification

The process of breaking down jobs into their simplest components to increase productivity by reducing complexity or skill requirements.