The Procurement Manager Was Able to Bring Down the Cost

question 148

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

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Definitions:

Young Children

Refers to individuals in the early stages of life, typically considered to be from birth to around 8 years old, who are developing rapidly across various domains.

Sleep Per Night

The duration of sleep an individual gets in a single night, which is significant for overall health and well-being.

Hours

Units of time equivalent to 60 minutes, used to measure the duration of events or the length of time allocated for activities.

REM Sleep

A phase of sleep characterized by rapid eye movements, vivid dreams, and increased brain activity.