Which of the Following Could Be the Cause of a Favourable

question 20

Multiple Choice

Which of the following could be the cause of a favourable materials price variance?

• A)The price of materials in the original budget was set too high.
• B)A discount on the purchase of materials.
• C)Well-trained production workers.
• D)Both A and B.

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Definitions:

Market Prices

The current the current price at which an asset or service can be bought or sold in a particular market.

Dividends

Money given by a business to its stock owners, which comes from the profits the company has made.

Dividend Payments

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Substantial Growth

A significant increase in a company's revenue, profits, or size within a short period of time.