All of the Following Variances Are Unfavorable Except?
A) Materials

question 71

Multiple Choice

$\begin{array}{lcc}\text { Item to Classify } &\text { Standard } &\text {Actual }\\\text { Sales volume } & 100,000 \text { units } &96,000 \text { units }\\\text { Sales price } & \$ 4 \text { per unit }&\$3.90 \text { per unit } \\\text { Material usage } & 40,000 \text { gallons } &42,000 \text { gallons }\\ \text { Labor price } & 12.50\text { per hour }&12.45 \text { per hour }\end{array}$ All of the following variances are unfavorable except?

• A) Materials usage
• B) Sales price
• C) Sales volume
• D) Labor price

---

Definitions:

Impossibility Theorem

A principle, also known as Arrow's impossibility theorem, stating that it is impossible to devise a social welfare function that fairly ranks societal preferences in the presence of three or more options.

Voting Scheme

A method or system used for casting votes and determining the outcome in an election or decision-making process.

Individual Preferences

The specific likes, dislikes, desires, and needs that dictate the choices made by an individual, often influencing economic decisions and behaviors.

Majority Rule

A decision rule that selects alternatives which have a majority, that is, more than half the votes.