📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    A claims processing unit uses a mix of clerks and

    analysts. Budget: 60% clerks (₹200/hr), 40% analysts (₹500/hr) for 10,000 hours. Actual: 55% clerks, 45% analysts; total 9,600 hours. Compute qualitative interpretation of mix variance sign.
    A Adverse: more cheaper grade used Correct Answer Incorrect Answer
    B Favourable: more cheaper grade used Correct Answer Incorrect Answer
    C Adverse: mix shifted to costlier grade Correct Answer Incorrect Answer
    D Favourable: mix shifted to costlier grade Correct Answer Incorrect Answer
    E Zero Correct Answer Incorrect Answer

    Solution

    Higher share of analysts (costlier grade) makes mix variance adverse, ceteris paribus.

    Practice Next
    More Accounts Questions
    ask-question