A Favorable Materials Price Variance Coupled with an Unfavorable Material

question 31

Multiple Choice

A favorable materials price variance coupled with an unfavorable material usage variance would MOST likely result from:

• A) problems with processing machines.
• B) the purchase of low quality materials.
• C) problems with labor efficiency.
• D) changes in the product mix.

---

Definitions:

Rate of Return

Over a predetermined period, the positive or negative change in an investment's value, displayed as a percentage of its initial cost.

Stock Price

The existing rate at which shares of a specific company are available for purchase or sale on the stock exchange.

Next Dividend

The upcoming payment declared by a company's board of directors to be distributed among shareholders.