A Favourable Material Price Variance Coupled with an Unfavourable Material

question 56

Multiple Choice

A favourable material price variance coupled with an unfavourable material usage variance would most likely result from

• A)labour efficiency problems.
• B)machine efficiency problems.
• C)the purchase and use of higher than standard quality material.
• D)the purchase and use of lower than standard quality material.

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Definitions:

Expected Rate

Anticipated return or yield on an investment or financial instrument, often based on historical data or statistical analysis.

Fidelity Mutual

An investment firm known for offering mutual funds and other financial products and services to its clients.

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A financial product that provides a series of equal payments over a period of four years to the holder.

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Recurring payments made once a year, often related to loans, leases, or other financial obligations.