An Unfavourable Price Variance May Occur Because

question 45

Multiple Choice

An unfavourable price variance may occur because:

• A) The price of direct materials increased
• B) The price of direct materials decreased
• C) The manufacturing process is more efficient
• D) The manufacturing process is less efficient

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Definitions:

Social Psychology

A branch of psychology that deals with understanding how individual behavior, feelings, and thoughts are influenced by the actual, imagined, or implied presence of others.

Conform

To adjust one's behavior or thinking to coincide with a group standard.

Behaviors

How an individual or system responds or acts when subjected to outside or inside stimuli.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, known also as the "knew-it-all-along" effect.