The Purchasing Manager Was Able to Bring Down the Cost

question 158

Multiple Choice

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

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

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Definitions:

Flip-Flop

A term often used to describe a sudden and complete reversal of position or opinion.

Conscious Processing

The mental activities of which an individual is aware, involving thoughts, perceptions, and feelings that are actively being thought about or manipulated.

Unconscious Processing

Mental processes that occur without conscious awareness, influencing perceptions, thoughts, and behaviors.

Fast and Effortless

Activities or processes that are completed quickly and with minimal mental or physical exertion.