Which of the Following Is Not a Possible Cause of an Unfavorable

question 96

Multiple Choice

Which of the following is not a possible cause of an unfavorable direct labor efficiency variance?

• A) Lack of motivation.
• B) Low quality materials.
• C) Poor supervision.
• D) All of the above could be considered possible causes of an unfavorable labor efficiency variance.

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Definitions:

Cost of Goods Sold

The direct costs attributed to the production of goods sold by a business, including materials and labor.

Net Sales

The revenue a company generates from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Vertical Analysis

A technique for analyzing financial statements where every item under the three key account categories (assets, liabilities, and equity) on a balance sheet is shown as a percentage of the total for each category.

Operating Expenses

Costs related to the operation of a business, excluding the cost of goods sold, financing costs, and taxes.