The Purchasing Manager Was Able to Bring Down the Cost

question 103

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 higher wastage 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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Relief

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Antidepressant Drug

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A neurotransmitter and hormone involved in the body’s fight or flight response, influencing attention, arousal, and mood.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, also playing a role in regulating mood, appetite, and sleep.