Which of the Following Factors Would Cause an Unfavourable Material

question 9

Multiple Choice

Which of the following factors would cause an unfavourable material quantity variance?

• A)using poorly maintained machinery
• B)using higher quality materials
• C)using more highly skilled workers
• D)receiving discounts for purchasing larger than normal quantities

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Definitions:

Differential Cost

The difference in cost between two alternative decisions or scenarios, important in the process of making financial decisions.

Book Value

The net value of a company's assets less its liabilities and preferred stock, often used to estimate the company's worth.

Yearly Expense

The total amount of money spent by a business or individual over the course of a year, including operational, administrative, and living expenses.

Old Equipment

Machinery or tools that have been used for a long period and may be outdated or less efficient compared to newer versions.