Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 10

Why does management need to separate direct labor variances into rate and efficiency components?

Step 1 of 2

The managers and the top management of the organizations should monitor the process and the cost involved. There can be deviations from the standards and necessary measures should be taken to rectify the deviations and bring the process on track.