Which of the Following Is Not a Reason for a Direct

question 59

Multiple Choice

Which of the following is not a reason for a direct materials quantity variance?

• A) Malfunctioning equipment
• B) Purchasing of inferior raw materials
• C) Increased material cost per unit
• D) Spoilage of materials

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Definitions:

Substitute Goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other falls, and conversely with an increase of price.

Equilibrium Price

Equilibrium Price is the price point at which the quantity of goods supplied equals the quantity of goods demanded in a market.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Water Ski Boats

Boats specifically designed and equipped to create a wake suitable for water skiing and other water sports.