Which Statement Best Describes Variances

question 54

Multiple Choice

Which statement best describes variances?

• A) A favourable labour rate variance could result from lower wage workers quitting.
• B) A favourable materials price variance could result from purchasing materials from another supplier at a lower price.
• C) A favourable materials usage variance could result from increased waste caused by not efficiently utilizing raw materials.
• D) An unfavourable labour efficiency variance could result from using higher quality materials that result in fewer inspections.

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Definitions:

Prototype Financing

The process of securing funds to design, build, and test a prototype before mass production, critical in the development of new products or technologies.

Capital Provided

This term denotes funds given to a company or project by investors or lenders for the purpose of financing operations, growth, or investments.

First-stage

An initial phase or period in a multi-stage process, often indicating the beginning steps in a project or strategy.

Red Herring

A red herring is a preliminary prospectus filed by a company with the Securities and Exchange Commission (SEC), usually in relation to an initial public offering. The term can also refer to misleading information.