Which of the Following Is Not Likely to Have Caused

question 54

Multiple Choice

Which of the following is not likely to have caused a materials price variance?

• A)The vendor from whom we always bought component XYZ closed and we found a new one.
• B)One of the workers inadvertently cut several pieces of steel to the wrong length.
• C)We started using a higher grade of lumber in our process.
• D)Higher oil prices have increased the costs of shipping the ingredients to us.

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Definitions:

Wholesalers

Businesses that sell goods in large quantities to retailers, other merchants, or industrial, commercial, and institutional users.

Office Supplies

Various commonly used items in offices for daily operations, including pens, paper, staplers, and more.

Wholly Owned

Refers to a business entity where 100% of the shares are owned by a single parent company.

Wholesaling Activities

Business operations involved in the sale of goods in large quantities at low prices, typically to retailers or professional buyers.