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 absenteeism
Sir the answer is C, why can't it be D? I chose D & I was wrong.
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Standard costing
3y ago#1The 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.
Got it sir !! Thanks !! :)
3y ago#3You are welcome :-)
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