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Which of following may cause an adverse efficiency variance for labour?
Select one:
A. Higher wage rates
B. Improved training
C. Machinery downtime
D. Unauthorised absenteeismSir the answer is C, why can’t it be D? I chose D & I was wrong.
The efficiency variance is the difference between the actual hours worked and the standard hours.
If the machinery is down then the workers are still there for work. If they are absent then they are not there for work.
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