The Purchasing Manager Was Able to Bring Down the Cost

question 166

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 would have led to a(n) ________.

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

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Definitions:

Flavor Aversion

The learned avoidance of a particular flavor or food due to a negative experience, such as illness, associated with that specific taste.

Long-Delay Learning

The association of a flavor with an illness or positive nutritional consequences that occurred even several hours after the flavor was consumed.

Species-Specific Defense

The predetermined, instinctive behaviors exhibited by animals of a particular species when threatened, reflecting survival mechanisms evolved over time.

Reactions

Responses of an organism to internal or external stimuli.