A Favorable Materials Price Variance Coupled with an Unfavorable Materials

question 28

Multiple Choice

A favorable materials price variance coupled with an unfavorable materials usage variance would most likely result from (CMA adapted)

• A)Machine efficiency problems.
• B)Product mix production changes.
• C)Labor efficiency problems.
• D)The purchase of lower-than-standard-quality materials.

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Definitions:

Tax Rates

The rate at which a person or a company is subject to taxation.

Inflation

The jump in the average price tag of goods and services, contracting the realm of purchasing possibilities.

Worst Recession

A particularly severe or damaging period of economic decline, characterized by significant decreases in GDP, high unemployment, and failing businesses.

Depression

An economic depression is a prolonged period of significant decline in economic activity across a region or country, characterized by high unemployment, low consumer spending, and a decrease in industrial production.