Which of the Following Statements Is True

question 114

Multiple Choice

Which of the following statements is true?

• A) An unfavorable materials price variance could have resulted from actions taken by the purchasing agent.
• B) An unfavorable materials usage variance could have resulted from actions taken by the production supervisor.
• C) An unfavorable labor usage variance could have resulted from actions taken by the personnel department.
• D) All of these answers are correct.

Recognize the advantages and disadvantages of job specialization.

Differentiate between simple and complex organizational structures.

Comprehend Adam Smith's contributions to efficiency through specialization.

Identify the role of horizontal and vertical communication in organizations.

---

Definitions:

Weighted Average Method

An inventory costing method that calculates item costs based on the weighted average of all units available for sale during the period.

FIFO

An inventory valuation method where the first items placed in inventory are the first sold, standing for "First-In, First-Out."

Process Cost System

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

Shampoo Manufacturer

A company that specializes in producing and possibly formulating shampoos for cleaning hair and scalp.