efficiency variances

efficiency variances

Accounting dictionary. 2014.

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  • direct labour efficiency variance — In a standard costing system, a variance arising as part of the direct labour total cost variance. It compares the actual labour time taken to carry out an activity with the standard time allowed and values the difference at the standard direct… …   Accounting dictionary

  • labour variances — See: direct labour efficiency variance, direct labour rate of pay variance, direct labour total cost variance …   Accounting dictionary

  • standard hour — A measure of production (not time) that represents the amount of work, number of units produced, etc., that can be achieved within an hour under normal conditions. It is used to calculate the efficiency ratio and efficiency variances …   Accounting dictionary

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