A Credit Balance in the Labor Yield Variance Implies

question 14

Multiple Choice

A credit balance in the labor yield variance implies:

• A) the total units produced was greater than the expected number of units given the total labor hours actually used.
• B) the total units produced was less than the expected number of units given the total labor hours actually used.
• C) the total units produced was greater than the expected number of units given the total standard hours allowed.
• D) the total units produced was less than the expected number of units given the total standard hours alloweD.
• This would be a favorable variance.

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Definitions:

Type I Error

The error that occurs when the null hypothesis is incorrectly rejected, falsely indicating a significant effect.

Type II Error

Occurs when a false null hypothesis is not rejected, meaning an effect or difference is missed in the analysis.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as the basis for statistical testing.

Type I Error

The incorrect rejection of a true null hypothesis, often denoted as a false positive.