IIA CIA Exam Part Three: Business Knowledge for Internal Auditing IIA-CIA-Part3-3P Question # 133 Topic 14 Discussion

IIA CIA Exam Part Three: Business Knowledge for Internal Auditing IIA-CIA-Part3-3P Question # 133 Topic 14 Discussion

IIA-CIA-Part3-3P Exam Topic 14 Question 133 Discussion:
Question #: 133
Topic #: 14

The head of the research and development department at a manufacturing organization believes that his team lacks expertise in some areas, and he decides to hire more experienced researchers to assist in the development of a new product. Which of the following variances are likely to occur as the result of this decision?

1) Favorable labor efficiency variance.

2) Adverse labor rate variance.

3) Adverse labor efficiency variance.

4) Favorable labor rate variance.


A.

1 and 2.


B.

1 and 4.


C.

3 and 4.


D.

2 and 3.


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