If a Company Has an Unfavorable Direct-Material Quantity Variance, Then

question 61

Multiple Choice

If a company has an unfavorable direct-material quantity variance, then:

• A) the direct-material price variance is favorable.
• B) the total direct-material variance is unfavorable.
• C) the total direct-material variance is favorable.
• D) the direct-labor efficiency variance is unfavorable.
• E) any of the other answers can occur.

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Definitions:

Time Flexibility

The adaptability of schedules or timelines to accommodate changes or unforeseen events, often enhancing efficiency or satisfaction.

Overall Demand

Refers to the total market need for a product or service over a specified period.

Product Flexibility

The ability of a company to modify its products to adapt to changes in consumer preferences or market demands.

Pricing Decisions

The process of determining the selling price of goods or services, taking into account factors like cost, demand, and competition.