Which of the Following Could Not Be an Explanation of the Labour

question 44

Multiple Choice

Which of the following could not be an explanation of the labour efficiency variance for a firm whose variances for the period included an unfavourable material price variance and a favourable labour efficiency variance?

• A) Standards are out of date.
• B) If the unfavourable material price variance was due to better quality materials being purchased, this in turn could lead to less waste of materials.
• C) A timesaving improvement to the material-handling techniques has not yet been incorporated into the standard.
• D) Deliberate inefficiency.

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Definitions:

Independent Variable

A variable in an experiment that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

In statistical analysis, this is the variable that is being tested and measured, often seen as the outcome influenced by independent variables.

Marginal Mean

The mean of a variable across levels of another variable, typically in the context of analysis of variance.

Means

Refers to the mathematical average of a set of numbers or quantities, carrying the same definition but rephrased for clarity.