An Efficiency (Quantity) Variance for Direct Materials and Direct Labour

question 46

True/False

An efficiency (quantity) variance for direct materials and direct labour measures how well a company keeps unit prices of material and labour inputs within standards.

---

Definitions:

Pension Plans

Financial programs that provide income to individuals during retirement, funded by employers, employees, or both.

Full-Time Employees

Individuals who are contracted to work a minimum number of hours specified by their employer, typically 30 to 40 hours a week.

Healthcare Spending Accounts

A savings account that allows employees to set aside pre-tax dollars to pay for eligible healthcare expenses.

Employee Benefits

Various types of non-wage compensation provided to employees in addition to their normal wages or salaries.