An Unfavorable Labor Efficiency Variance Is Most Likely to Occur

question 30

Multiple Choice

An unfavorable labor efficiency 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:

Intelligence Test

A standardized test designed to measure human intelligence and cognitive capabilities.

Unitary Phenomenon

An event or occurrence that is considered as a single, indivisible entity, often in the context of scientific observation or theory.

IQ Test

A standardized test designed to measure human intelligence and cognitive ability in relation to the average performance of others in the same age group.

Variability

The degree to which scores in a frequency distribution depart from the central value.