Lukey Products Has an Unfavorable Materials Usage Variance

question 91

Multiple Choice

Lukey Products has an unfavorable materials usage variance. Which of the following would be the most likely reason for this variance?

• A) The company under budgeted the quantity of material to be used for each unit.
• B) The company purchased material at a price for less than what was expected.
• C) The company budgeted for a lower sales volume than what actually occurred.
• D) The company did not use up all the material that had been purchased.

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Definitions:

Job Diagnostic Survey

A tool used to assess the characteristics of a job and how those characteristics impact employee motivation, satisfaction, and performance.

Core Job Characteristics

Fundamental attributes of a job, such as skill variety, task identity, task significance, autonomy, and feedback, that can influence employee motivation and satisfaction.

Critical Psychological States

Specific conditions of the individual's psychological experience which are pivotal for determining outcomes like motivation, satisfaction, and performance at work.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.