Miller Company Has an Unfavourable Materials Price Variance

question 90

Multiple Choice

Miller Company has an unfavourable materials price variance.Which of the following would be the least likely reason for this variance?

• A) The company purchased a higher quality material than was budgeted.
• B) The company did not take advantage of purchase discounts.
• C) The company used more material than was budgeted for in each unit.
• D) The company underbudgeted the standard price for materials.

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Definitions:

Cohort

A group of individuals sharing a common factor (e.g., age, experience) within a specified period, often studied to identify patterns over time.

Longitudinal

A research design that involves repeated observations of the same variables over short or long periods of time.

Cross-sectional

An observational study type that examines data collected from a population or a representative sample at one particular point in time.

Cross-sectional

A research design that analyzes data from a population, or a representative subset, at one specific point in time.