Which One of the Following Variances Is of Least Significance

question 7

Multiple Choice

Which one of the following variances is of least significance from a behavioral control perspective? (CMA adapted)

• A) Unfavorable materials quantity variance amounting to 20% of the quantity allowed for the output attained.
• B) Unfavorable labor efficiency variance amounting to 10% more than the budgeted hours for the output attained.
• C) Favorable materials price variance obtained by purchasing raw materials from a new vendor.
• D) Fixed factory overhead volume variance resulting from management's decision midway through the fiscal year to reduce its budgeted output by 20%.

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Definitions:

Mindfulness

The practice of being fully present and engaged in the moment, aware of one’s thoughts and feelings without judgment.

Positive Individual Trait

A characteristic or quality in a person that contributes to their overall positive perception and effectiveness in various aspects of life.

Agency

The capacity of individuals to act independently and make their own free choices, contrary to the forces of social structures.

Hope

People’s expectations that their goals can be achieved in the future.