Which of the Following Is True Regarding Direct Labor Variances

question 78

Multiple Choice

Which of the following is true regarding direct labor variances?

• A) The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid.
• B) The labor rate and labor efficiency variances will always add up to the total labor variance.
• C) The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used.
• D) The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been used.
• E) The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that were originally budgeted.

Understand and apply the concept of perpetuity in financial calculations.

Calculate the present value of perpetuities and annuities given various compounding frequencies.

Determine the necessary initial investment to achieve desired future payments or perpetuities.

Interpret the impact of different interest rates and compounding frequencies on investments and payments.

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