LST Corporation Entered into a New Contract with One of Its

question 60

Multiple Choice

LST Corporation entered into a new contract with one of its raw material suppliers. The new contract required the supplier to deliver raw materials with a 24-hour notice from LST. This reduces LST's material handling costs, but has increased the cost of the raw materials delivered. Which of the following variances is most likely to result?

• A) Unfavourable direct material price variance
• B) Favourable direct price variance
• C) Unfavourable variable overhead spending variance
• D) Unfavourable fixed overhead spending variance

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Definitions:

Fast Mapping

The process by which children are able to learn the meaning of a new word after only a brief encounter.

Gene Expression

The process by which the information encoded in a gene is used to direct the assembly of a protein molecule.

Mental Representation

An internal cognitive symbol that represents external reality, or the mental process of creating such symbols.

Language Development Problem

Difficulties in the acquisition and use of language due to physiological or cognitive factors.