Justin Company Recently Purchased Materials from a New Supplier at a Very

question 4

Multiple Choice

Justin Company recently purchased materials from a new supplier at a very attractive price.The materials were found to be of poor quality,and the company's laborers struggled significantly as they shaped the materials into finished product.In a desperation move to make up for some of the time lost,the manufacturing supervisor brought in more-senior employees from another part of the plant.Which of the following variances would have a high probability of arising from this situation?

• A)Material price variance,favorable.
• B)Material quantity variance,unfavorable.
• C)Labor rate variance,unfavorable.
• D)Labor efficiency variance,unfavorable.
• E)All of thesE.

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Definitions:

Subunits

Secondary or smaller divisions within a larger organization or structure.

Network Structures

Organizational designs that emphasize and rely on interconnected, flexible arrangements of individuals, groups, or organizations to complete tasks or projects.

Functional Structures

An organizational framework where the company is divided into departments based on their function, such as marketing, finance, and production.

Informal Structures

Unofficial, non-bureaucratic networks and relationships that influence decision-making and culture in organizations.