An Unfavourable Direct Labour Efficiency Variance Could Be Caused by

question 52

Multiple Choice

An unfavourable direct labour efficiency variance could be caused by

• A)an unfavourable material quantity variance.
• B)an unfavourable variable overhead spending variance.
• C)a favourable material quantity variance.
• D)a favourable variable overhead spending variance.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business, whichever is longer.

Reversing Entries

These are accounting journal entries that reverse a previous entry, usually made at the beginning of a new accounting period to simplify record-keeping.

Work Sheet

An informal document used by accountants and auditors for preparing financial statements and ensuring the correctness of accounts.

Post-Closing Trial Balance

A listing of all accounts and their balances after closing entries are made, serving as a check to ensure that debits equal credits.