The Production Manager of a Company Was Experiencing High Defect

question 20

Multiple Choice

The production manager of a company was experiencing high defect rate on the assembly line, which was slowing production and causing wastage of valuable materials. He decided to purchase a higher grade of material which would be more reliable, but he was worried that the cost of the new material might negatively impact operating income. This situation could have produced which of the following variances?

• A) Favorable materials price variance
• B) Unfavorable labor price variance
• C) Unfavorable labor efficiency variance
• D) Favorable materials efficiency variance

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Definitions:

Social Reinforcement

The process of encouraging or establishing a behavior using rewards or punishments from others in a social setting.

Material Reinforcement

The use of tangible rewards or incentives to encourage desired behaviors or outcomes.

Phenomenological Perspective

An approach in psychology focusing on the subjective experience of individuals and how they perceive and interpret their world.

Construals

Psychological terms for an individual's unique interpretation or perception of the world, influencing their thoughts, feelings, and actions.