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Better quality material was easier to process -> labour efficiency (F)?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Better quality material was easier to process -> labour efficiency (F)?

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • April 14, 2024 at 11:58 pm #703940
    Nullu
    Participant
    • Topics: 16
    • Replies: 18
    • ☆

    Can you help me understand how “Better quality material was easier to process” results in having a favourable direct labour efficiency variance? (BPP 15.6)

    My thought process was, that if a product is in a better quality, it requires more time to produce therefore resulting in adverse labour efficiency variance.

    However I do understand that if a product is easier to process, then it will result in (F) labour efficiency. To me “Better quality material was easier to process” does not make sense, please help me understand. Thank you!

    April 15, 2024 at 9:17 am #704017
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54674
    • ☆☆☆☆☆

    The question is not referring to the quality of the production but the quality of the materials being used.

    Better quality materials are likely to be easier to work with which will mean faster working.

    April 15, 2024 at 3:50 pm #704084
    Nullu
    Participant
    • Topics: 16
    • Replies: 18
    • ☆

    Thank you! The explanation helped me understand 🙂

    April 15, 2024 at 4:06 pm #704093
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54674
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Better quality material was easier to process -> labour efficiency (F)?’ is closed to new replies.

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