Which Is Not a Reason Direct Labor Variances May Occur

question 41

Multiple Choice

Which is not a reason direct labor variances may occur?

• A)Managers do not correctly anticipate changes in wage rates.
• B)Poor materials are used in production.
• C)Prices rise with direct materials.
• D)All of the above.

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Definitions:

Implied Warranty

A legal guarantee that the product sold will be of satisfactory quality and fit for purpose, even if not explicitly stated.

Possession

The state of having in one's control or owning something.

Landlord's Lien

A legal right granted to landlords to claim tenants' personal property to recover unpaid rent or damages.

Held Harmless

A legal principle where one party is protected or exempt from liability for damages or penalties.