The Total Direct Labor Variance Can Be Broken Down into Two

question 50

True/False

The total direct labor variance can be broken down into two components: the efficiency variance and the price variance.

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Definitions:

Time Card

A record of the hours worked by an employee, used to calculate payroll and ensure compliance with labor laws.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Payroll Bank Account

A designated bank account used exclusively for processing payroll transactions and managing salary disbursements.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.