Which One of the Following Variances Is of Least Significance

question 7

Multiple Choice

Which one of the following variances is of least significance from a behavioral control perspective? (CMA adapted)

• A) Unfavorable materials quantity variance amounting to 20% of the quantity allowed for the output attained.
• B) Unfavorable labor efficiency variance amounting to 10% more than the budgeted hours for the output attained.
• C) Favorable materials price variance obtained by purchasing raw materials from a new vendor.
• D) Fixed factory overhead volume variance resulting from management's decision midway through the fiscal year to reduce its budgeted output by 20%.

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Definitions:

Genetic Material

The molecules (DNA or RNA) that carry the genetic instructions used in the growth, development, functioning, and reproduction of organisms.

DNA Ligase

A biological catalyst that assists in the fusion of DNA strands through the facilitation of a phosphodiester bond formation.

Lagging Strand

The lagging strand refers to one of the two strands of DNA at the replication fork that is synthesized discontinuously in short segments known as Okazaki fragments.

Leading Strand

The leading strand is the strand of DNA which is synthesized continuously during DNA replication, in the direction of the replication fork.