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:

Pride

A feeling of satisfaction and self-respect that comes from one's achievements, qualities, or possessions, which can also reflect a community's esteem.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood-glucose concentration.

Well-Being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health and overall quality of life.

Secure Attachment

A stable and healthy emotional bond between an infant and their caregiver, characterized by trust and a sense of safety.