A Company Uses Milk in Producing Its Product

question 125

Multiple Choice

A company uses milk in producing its product. If the price of milk doubles, which variance is directly impacted?

• A) Materials price variance
• B) Materials efficiency variance
• C) Labour price variance
• D) Labour efficiency variance

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Definitions:

Gold

A precious metal used historically as a store of value, for investment, and in various industrial and technological applications.

Ethanol

A volatile, flammable, colorless liquid alcohol used as a fuel additive and in alcoholic beverages.

Government

The organization or system through which a community, state, or nation is governed and regulatory policies are implemented.

Subsidizes

Financial aid supplied by the government to an industry or business so that the price of a commodity or service may remain low or competitive.