Which of the Following Is Not Likely to Cause a Labor

question 70

Multiple Choice

Which of the following is not likely to cause a labor efficiency variance?

• A)We produced more units than were budgeted.
• B)There was a flu outbreak and workers had to cover unfamiliar positions.
• C)We purchased materials that were poor in quality.
• D)One of the supervisors discovered a way to streamline a process.

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Definitions:

Fixed Expenses

Consistent costs that do not change in total over a short period, regardless of the level of production or sales.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Operating Costs

Expenses associated with the day-to-day functionalities of a business, including costs for materials, labor, and overhead.

Scrap Value

The estimated residual value of an asset at the end of its useful life.