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

---

Definitions:

Gain-sharing

A performance-related pay strategy that offers employees financial rewards based on improvements in the company's productivity or performance.

Productivity

The efficiency at which goods or services are produced relative to the input used.

Costs

The amount of money required to purchase something or the expenditure involved in the producing, maintaining, or providing of a service.

Integrative View

A holistic approach that considers various factors and their interconnections in the analysis or decision-making process.