Which of the Following Combinations of Direct-Material Variances Might Prompt

question 55

Multiple Choice

Which of the following combinations of direct-material variances might prompt management to undertake a detailed variance investigation?

• A) Price, unfavorable; quantity, unfavorable.
• B) Price, unfavorable; quantity, favorable.
• C) Price, favorable; quantity, unfavorable.
• D) Price favorable; quantity, favorable.
• E) All of the answers are correct.

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Definitions:

Scope Of The Agency Relationship

The range of actions and decision-making authority granted to an agent by their principal.

Principal's Liability

Legal responsibility of the principal for the acts of their agent that are carried out within the scope of the agent's authority.

Tort

A legal term for a civil wrong or breach of duty to another person, resulting in loss or harm, and subject to compensation or legal remedy.

Criminal Act

An action or omission that constitutes an offense that may be prosecuted by the state and is punishable by law.