The materials price and efficiency variances could be an indication that the company purchased
▼
expensive ingredients of
▼
quality, which resulted in
▼
fewer
more
than the standard number of rejected units. The labor price variance suggests that
▼
less
more
experienced workers may have worked more, resuting in a
▼
faster
slower
work pace and a
▼
higher
lower
than normal amount of rejects or waste.
The company should determine the cause of the rejects. The cause could be
▼
faulty materials.
faulty materials, underskilled workers, or a combination of both.
underskilled workers.
Perhaps
▼
additional training
increased wages
more relaxed time standards
regularly scheduled equiment maintenance
will help. If rejects are not the problem, employees may be
▼
needed to properly maintain the equipment.
needed to properly schedule the work more efficiently.
needed to renegotiate the terms for materials purchases.
wasting both time and materials.
Answers: 3
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The materials price and efficiency variances could be an indication that the company purchased
▼
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