The unemployment rate is high in the city in which a company has a factory.The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago.Which variance is directly impacted?

Question

Quizplus · Accepted Answer

The change in the unemployment rate would directly impact the labor market, causing the company to be able to pay lower wages (i.e. a lower labor price variance). The other variances listed (materials price, materials efficiency, labor efficiency) would not be directly impacted by changes in the unemployment rate.

The Unemployment Rate Is High in the City in Which