If a Worker Drops the Raw Material During Production and the Raw

question 135

Multiple Choice

If a worker drops the raw material during production and the raw material must be discarded,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:

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Differentiation

A strategy used by businesses to distinguish their products or services from competitors', often through quality, innovation, or customer service.

Lag

A delay or time taken for a process or variable to adjust after a change in another variable or the initiation of a process.

Competitive Business Strategies

Strategies that businesses implement to gain an edge over their competitors in the market.