The Procurement Manager Was Able to Bring Down the Cost

question 51

Multiple Choice

The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightly lower grade quality than the company had used previously. The lower grade of materials, however, meant a higher defect rate on the assembly line, and higher wastage of materials during production, which in turn lowered operating income. This situation would have led to a(n) :

• A)favorable direct materials cost variance.
• B)unfavorable direct labor cost variance.
• C)unfavorable direct labor efficiency variance.
• D)favorable direct materials efficiency variance.

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Definitions:

Parasagittal

Referring to any plane or section parallel to the sagittal plane, which divides the body into left and right portions.

Coronal

Referring to a plane or section that divides the body into front and back portions.

Molecule

The smallest physical unit of an element or compound, consisting of one or more atoms bonded together.

Mitochondrion

A cellular organelle involved in energy production, critical for ATP synthesis through the process of oxidative phosphorylation.