A direct labour efficiency variance cannot be caused by
A) producing fewer finished units than originally planned.
B) poor quality raw materials.
C) employee inefficiency.
D) an out-of-date labour time standard.

Question

Quizplus · Accepted Answer

Producing fewer finished units than originally planned affects the quantity of output but does not directly impact the efficiency of labor used in production. Efficiency variance focuses on how effectively labor time is used, not the volume of output.

A Direct Labour Efficiency Variance Cannot Be Caused by