A Labor Efficiency (Usage) Variance Is Most Likely to Occur

question 18

Multiple Choice

A labor efficiency (usage) variance is most likely to occur if:

• A) Employees are paid at an overtime wage rate.
• B) Employees are inefficient and units must be reworked.
• C) Labor cost per unit exceeds materials costs per unit.
• D) Employee turnover rates are low.

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Definitions:

Death Instincts

The unconscious drive toward decay, destruction, and aggression.

Preconscious

Pertains to thoughts and feelings not immediately in conscious awareness but can be readily brought to consciousness.

Personality Structure

The organization and dynamics of individual personality components, including traits, attitudes, and behaviors that define a person's unique personality.

Psychoanalysis

Sigmund Freud’s theory of personality and system of therapy for treating mental disorders.