A Direct-Material Quantity Variance Can Be Caused by All of the Following

question 43

Multiple Choice

A direct-material quantity variance can be caused by all of the following except:

• A)improper employee training.
• B)changes in sales volume.
• C)acquisition of materials at a very attractive price.
• D)adjustment problems with machines.
• E)disgruntled workers.

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Definitions:

Disbursement Float

The time lag between when a payment is issued by a payer and when the funds are actually withdrawn from the payer's account.

Receivable Accounts

Balances of money due to a company for goods or services provided that have not yet been paid by customers.

Collection Time

The average period that a company takes to collect payments from its customers after a sale has been made, impacting cash flow and liquidity.

Processing Delay

The time lag between the initiation and completion of a process, often seen in transaction processing or manufacturing operations.