4a)
suggested Answer:
Kitchen labour hours:
The industry norm is to work longer hours than actually paid for, so the negative variance in labour hours would be no surprise
My question is if the employees are being paid less than they worked for then why is it normal to be a negative variance should not it be a positive variance to nehby?
Ask the Tutor ACCA SBL
Nehby(specimen 3)
4y ago#1It is because not all hours worked are recorded. The hours worked are less than expected so actual compared to standard is 'negative'. This results in a positive cost variance.
Confusing use of the word 'negative'.
ok
This topic is locked — no new replies.