The Purchasing Manager Was Able to Bring Down the Cost

question 158

Multiple Choice

The purchasing manager was able to bring down the cost of direct materials by purchasing direct materials of a slightly lower grade quality than the company had used previously.The lower grade of direct materials,however,meant a higher defect rate on the assembly line and a higher waste of direct materials during production,which in turn lowered operating income.This situation would lead to a(n) ________.

• A) favorable direct materials cost variance
• B) unfavorable direct labor cost variance
• C) favorable direct labor efficiency variance
• D) favorable direct materials efficiency variance

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Definitions:

Poststructuralism

An intellectual movement critiquing the ability of our language and structures to fully represent or capture reality, emphasizing the instability of meaning.

Postmodernism

is a broad movement that developed in the mid- to late-20th century across philosophy, the arts, architecture, and criticism, marking a departure from modernism with its skepticism towards grand narratives and emphasis on relativism and individuality.

Modern Conceptions

Concepts or ideas that are current and widely accepted in the present time.

Hyperspace

A concept from mathematics and science fiction referring to a space with more dimensions than those of the observable universe.