A Labour Efficiency Variance Resulting from the Use of Poor

question 28

Multiple Choice

A labour efficiency variance resulting from the use of poor quality materials should be charged to

• A)the production manager.
• B)the purchasing agent.
• C)manufacturing overhead.
• D)the industrial engineering department.

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Definitions:

Warranty Repairs

Services provided to repair or fix products covered under a warranty at no charge to the customer, typically within a specified time period after purchase.

Estimated Premium Claims

The projected claims that an insurance company expects to pay out based on the premiums it has received.

Coupons Redeemed

The act of exchanging a coupon for a discount, product, or service, usually part of a promotional offering.

Premium Expense

The cost associated with purchasing an insurance policy or the amount over the face value paid for a bond or stock.