Which of the Following Would Be the Most Likely Cause

question 22

Multiple Choice

Which of the following would be the most likely cause of an adverse material usage variance?

• A) Use of cheaper (lower quality) of materials
• B) Having to purchase materials at short notice (and higher price)
• C) Increase in market prices
• D) Labour overtime

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Definitions:

Annuity

An investment vehicle that provides a consistent series of disbursements to a person, often employed in retirement planning.

RRSP

A registered retirement savings plan, a tax-advantaged account designed to help Canadians save for retirement.

Compounded

The process by which interest is earned on both the initial principal and the interest that has been added to it, thus "compounding" the amount.

Monthly

Occurring or done once a month.