Which of the Following Does Not Result in a Favorable

question 3

Multiple Choice

Which of the following does not result in a favorable direct materials price variance?

• A)The purchasing manager changed to a lower-price supplier.
• B)The purchasing manager negotiated the direct materials prices more skillfully than was planned for the budget.
• C)The purchasing manager ordered larger quantities than the quantities budgeted,and therefore obtained quantity discounts.
• D)The price of direct materials decreased as a result of industry oversupply.
• E)Budgeted purchase prices of direct materials were set too low without careful analysis of market conditions.

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Definitions:

Vestibule

An entrance hall or other open area in a building used by the public, especially a hotel or theater.

Acoustic

Pertaining to sound or the sense of hearing.

Decibel

A unit of measurement used to express the intensity of sound or the power level of an electrical signal by comparing it with a given level on a logarithmic scale.

Myringotomy

A surgical procedure to create an opening in the eardrum to drain fluid or relieve pressure.