The Purchasing Manager Was Able to Bring Down the Cost

question 166

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 would have led to a(n) ________.

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

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Definitions:

Chondrosarcoma

A type of cancer that occurs in the cartilage cells and is typically seen in adults, often in the pelvis, leg, or arm.

Osteosarcoma

A type of bone cancer that originates from osteoblasts, the cells that make bony tissue.

Cartilage

A flexible, rubbery tissue found in joints, the respiratory tract, and between spinal discs, acting as a cushion and structural component.

Allergic Reaction

An Allergic Reaction is the body's immune system response to a substance (allergen) that it mistakenly identifies as harmful, resulting in symptoms like itching, swelling, and difficulty breathing.