Which of the Following Is a Possible Reason Why Actual

question 164

Multiple Choice

Which of the following is a possible reason why actual prices might differ from standard prices, resulting in a direct materials price variance?

• A)The company may order more materials than it expects to use.
• B)The company may receive more materials than ordered.
• C)The vendors may change their prices as a result of changes in the market.
• D)The company may purchase fewer materials than used.

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Definitions:

Obligation to Mitigate

The duty of a party who has suffered damages to take reasonable action to minimize the amount of the loss.

Torts Committed

Acts or omissions that cause harm or loss, leading to civil legal liability under tort law.

Fiduciary Duty

An obligation wherein an individual must act in the best interest of another person or entity, prioritizing their benefits over their own.

Serious Misconduct

Serious misconduct is a severe behavior or action by an employee that breaches workplace rules or standards to such an extent that it justifies immediate dismissal.