Which of the Following Is a Possible Cause for an Unfavorable

question 50

Multiple Choice

Which of the following is a possible cause for an unfavorable labor rate variance?

• A)An unexpected increase in hiring new unskilled personnel.
• B)Producing fewer units than expected.
• C)An unexpected increase in demand caused the direct labor workforce to work overtime.
• D)Using attainable standards rather than ideal standards.
• E)None of the answer choices is correct.

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Definitions:

Computerized Accounting System

A software-based method that provides automatic bookkeeping and accounting for business transactions, improving accuracy and efficiency over manual methods.

Chart of Accounts

A listing of all the accounts in a general ledger that a business uses to code each of its transactions based on the nature of the expense, asset, liability, etc.

General Ledger

A comprehensive accounting record of all transactions of a business, summarizing all accounts and transactions in one place.

General Ledger Accounts

These are the main accounts where all the business transactions of a company are recorded, serving as a permanent record organized by account.