Final answer:
Time and motion studies are indeed essential tools for calculating labor efficiency variances, as they allow for the standardization of work processes and the analysis of productivity. Developed by Frederick Taylor, these studies aim to optimize labor performance and align the goals of the employee and management.
Step-by-step explanation:
The statement that time and motion studies are acceptable information for developing labor efficiency variances is True. Time and motion studies are a set of business efficiency tools that involve timing and observing the pace at which work is performed. These studies allow management to establish standardized procedures and to measure the efficiency of labor by analyzing the time taken to complete specific tasks.
Frederick Taylor, a key figure in the study of industrial efficiency, utilized time and motion studies extensively in his approach to scientific management. He posited that by breaking down tasks and measuring the time and motions involved, it was possible to determine the most efficient way to do work. This could then be used to set labor performance standards and to quantify deviations from these standards in the form of efficiency variances.
Such studies are valuable for organizations as they can lead to more effective training, better resource allocation, and improved productivity by minimizing waste and optimizing operational activities. Combining time and motion analysis with employee incentives can align the interests of employees and management towards greater productivity and cost control.