A Materials Usage Variance Can Be Caused by All the Following

question 152

Multiple Choice

A materials usage variance can be caused by all the following except:

• A) The number of units produced during the period (i.e., output volume).
• B) Performance of the workers in using the materials.
• C) Quality of the materials.
• D) Skill level of the workers using the materials.
• E) Inadequate employee supervision.

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Definitions:

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others.

Domestic Price

The price level of goods and services within a country's border, reflecting the domestic market's supply and demand conditions.

Shoes

Footwear crafted from various materials designed to protect and comfort the human foot while enabling mobility, often reflecting fashion and social status.

International Trade

The exchange of goods and services across national borders, driven by the principle of comparative advantage.