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IIA Business Knowledge for Internal Auditing IIA-CIA-Part3 Question # 112 Topic 12 Discussion

IIA Business Knowledge for Internal Auditing IIA-CIA-Part3 Question # 112 Topic 12 Discussion

IIA-CIA-Part3 Exam Topic 12 Question 112 Discussion:
Question #: 112
Topic #: 12

The head of the research and development department at a manufacturing organization believes that his team lacks expertise in some areas and 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?

Favorable labor efficiency variance

Adverse labor rate variance

Adverse labor efficiency variance

Favorable labor rate variance


A.

1 and 2.


B.

1 and 4.


C.

3 and 4.


D.

2 and 3.


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