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The learning effect entered on a spreadsheet were overstated due to input error.
Which of the following is this most likely to give rise?– The answer is adverse labour efficiency planning variance.
– Could you explain how this variance may arise?If they have overstated the learning effect they will be budgeting on the time taken being lower than it actually will be. Therefore it will be expected that the actual time will be longer than budgeted and will therefore be an adverse variance.
“If they have overstated the learning effect they will be budgeting on the time taken being lower than it actually will be.”
– I am a bit confused here.
How can an overstatement be result in time taken being lower?
If we overstated, it means we are taking more time to learn and therefore at the steady stage, our budgeted time taken will be lower.-Please tell me where I am getting things wrong concerning this overstatement of learning effect.
Thanks.
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