Causes For Labour Efficiency Variance

Advertisement

The causes giving rise to direct labour efficiency variance as follows:

  1. Lack of proper supervision or stricter supervision that specified.
  2. Poor working conditions
  3. Delay due to, waiting for materials tools, instructions etc. if not treated as idle time.
  4. Defective machine tools, and other equipments.
  5. Machine break down if not booked to idle time.
  6. Work on new machines requiring less tike then provided for as long as the standard is not revised.
  7. Basic inefficiency of workers due to low morale, insufficient training,  faulty instructions, incorrect scheduling of jobs etc.
  8. Use of non standard material requiring more or less operation wages.
  9. Carrying our operations not provided for and booking them as direct wages.
  10. In correct standards
  11. Wrong selection of workers, e.g. no employing the right type of man for doing the job.
  12. Increase in labour turnover.
  13. Incorrect recording of performances, i.e. time and output.
Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
4 Comments

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account