Reference: 21_01
Five Rings, Inc, Has Collected the Following Data

question 98

Multiple Choice

Reference: 21_01
Five Rings, Inc, has collected the following data on one of its products:
$\begin{array}{ll}\text { Direct materials standard (4 lbs. @ \$1/lb.) } & \$ 4 \text { per finished unit } \\\text { Total direct materials cost variance-unfavorable } & \$ 13,750 \\\text { Actual direct materials used } & 150,000 \mathrm{lbs} . \\\text { Actual finished units produced } & 30,000 \text { units }\end{array}$
-The direct materials price variance is:

• A) $13,750 unfavorable
• B) $16,250 unfavorable
• C) $16,250 favorable
• D) $30,000 unfavorable
• E) $33,000 favorable

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Definitions:

Competitive Advantage

A unique attribute or ability that allows an organization to outperform its competitors.

Marketing Strategy

A long-term approach designed to achieve a company's marketing goals by creating a unique position in the marketplace through the selection of a target market and the formulation of a marketing mix.

Market-oriented

A business approach focused on understanding and meeting the needs and wants of customers in a specific market.

CEO

Chief Executive Officer; the highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.