Which of the Following May Cause an Unfavorable Material Variance

question 38

Multiple Choice

Which of the following may cause an unfavorable material variance?
I.More material was used than planned.
II.A company paid a higher price for materials than expected.
III.More materials were used than purchased.

• A)I and II
• B)II and III
• C)I and III
• D)I, II, and III

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Definitions:

Budget Goals

Financial targets that an organization aims to achieve within a specific period through its budgeting process.

Forecast Level

The estimation of future quantities, values, or trends based on current and historical data.

Inventory Units

Inventory units refer to the individual items or products that are held in stock by a business, awaiting sale or use in production.

Aardvark Ltd

A hypothetical or specific company named Aardvark Ltd, without context its nature or industry cannot be defined.