Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 5

Multiple Choice

Use the information below to answer the following questions. $$\begin{array} { l c c } & \text { Budget for April } & \text { Actual for April } \\\text { Output } & 40,000 \text { units } & 40,000 \text { units } \\\text { Sales } & \$ 400,000 & \$ 400,000 \\\text { Raw materials } & \$ 80,000 & \$ 88,000 \\\text { Labour } & \$ 200,000 & \$ 180,000 \\\text { Overheads } & 225,000 & 305,000\end{array}$$
-Refer to the table above. The raw materials variance can best be described as:

• A)an adverse variance resulting from a rise in the price of raw materials.
• B)an adverse variance resulting from excessive use of raw materials and/or an increase in their price.
• C)an adverse variance resulting from excessive use of raw materials.
• D)a favourable variance resulting from efficient use of raw materials.

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Definitions:

Open Systems

A concept in systems theory that describes entities or organizations which interact with their environment by exchanging energy, information, or materials.

General Systems Theory

A theoretical framework that views systems—whether biological, social, or physical—as coherent entities made up of interrelated and interdependent parts.

Continuous Exchange

An ongoing process of giving and receiving, often referring to information, goods, or services in various contexts.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy, starting from basic physical requirements to higher psychological needs, culminating in self-actualization.