If a Company Has an Unfavorable Direct-Material Quantity Variance, Then

question 47

Multiple Choice

If a company has an unfavorable direct-material quantity variance, then:

• A) the direct-material price variance is favorable.
• B) the total direct-material variance is unfavorable.
• C) the total direct-material variance is favorable.
• D) the direct-labor efficiency variance is unfavorable.
• E) Any of the answers can occur.

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Definitions:

Logistics

The management of the flow of goods, information, and resources between the point of origin and the point of consumption in order to meet the requirements of customers or corporations.

Supply Chain Performance

An evaluation of how well a supply chain achieves its goals, often measured through metrics like efficiency, speed, cost, and reliability.

Time

The indefinite continued progress of existence and events in the past, present, and future regarded as a whole.

Quantity

The amount, size, or number of something, which can be measured or counted.