An Unfavorable Materials Usage Variance Would Occur If

question 66

Multiple Choice

An unfavorable materials usage variance would occur if:

• A)less material is purchased than is used.
• B)actual pounds of materials used were less than the standard pounds allowed.
• C)actual labor hours used was greater than the standard labor hours allowed.
• D)actual pounds of materials used was greater than the standard pounds allowed.

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Definitions:

Price Fixing

An illegal agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price or maintain the market conditions so that the price is maintained at a given level by controlling supply and demand.

Tying Arrangement

A sales strategy where a seller requires a buyer to purchase a secondary product as a condition of purchasing a desired primary product.

Exclusive Territorial Distributorship

A distribution strategy where a manufacturer grants exclusive rights to distribute its products in a specific territory to a single distributor.

Cease and Desist Order

A legal order issued by a court or government authority demanding that an individual or organization stop a specified activity immediately.