If Management Experiences an Unfavorable Direct Materials Efficiency Variance, Which

question 172

Multiple Choice

If management experiences an unfavorable direct materials efficiency variance, which of the following would not be the possible corrective action?

• A) Improve the design of the product
• B) Provide additional training for the direct laborers
• C) Purchase higher quality materials
• D) Negotiate lower prices for material acquisition

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Definitions:

Marginal Costs

Marginal costs refer to the additional cost incurred from producing one more unit of a good or service.

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions on the allocation of limited resources.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, including inflation, unemployment, and economic growth.

Industrial Organization

A field of economics that studies the structure of and boundaries between firms and markets, and the strategic interactions within them.