The Production of a Company Was Experiencing a High Defect

question 33

Multiple Choice

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

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

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Definitions:

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John Watson

An American psychologist often considered the father of behaviorism, emphasizing the study of observable behavior over the study of the mind.

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Awareness and the capacity to think critically about one's self, sensations, mindset, immediate environment, and various experiences.

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