If the Employees Who Build the Product Go on Strike

question 46

Multiple Choice

If the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired,which variance is directly impacted?

• A)Materials price variance
• B)Materials efficiency variance
• C)Labor price variance
• D)Labor efficiency variance

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Definitions:

Batch Size

The quantity of units produced in a single production run or batch, affecting efficiency and cost.

Complexity

The state or quality of being intricate or complicated, often referring to processes, systems, or issues with many interrelated parts or aspects.

Value-added Activities

Activities that increase the value of goods or services to the consumer, thereby making them more valuable in the eyes of customers.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, improving cost accuracy.