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:

Academically Oriented

A focus or approach that prioritizes academic achievement and educational goals above other aspects.

Free Play

Unstructured, voluntary play that allows children to develop creativity, imagination, and decision-making skills through self-directed activity.

Montessori

A method of education that is based on self-directed activity, hands-on learning, and collaborative play, pioneered by Maria Montessori.

Scaffolding

An educational method that involves providing support structures to facilitate learning, gradually removed as learners gain independence.