The Purchasing Agent of an Organization Acquired Some Raw Materials

question 9

Multiple Choice

The purchasing agent of an organization acquired some raw materials at a bargain price, even though she knew that their quality was lower than that of the materials customarily used.This action resulted in a favorable raw materials purchase price variance that might very well have been more than offset by:

• A)an unfavorable raw materials usage variance.
• B)a favorable direct labor efficiency variance.
• C)an unfavorable variable overhead spending variance.
• D)an unfavorable direct labor rate variance.

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Definitions:

Proliferation

Rapid increase or spread of cells or organisms.

Hodgkin Disease

a type of lymphoma characterized by the presence of Reed-Sternberg cells, leading to the enlargement of lymph nodes and affecting the immune system.

Exacerbation

An increase in the severity of a disease or the intensity of its symptoms.

Differentiation

The process of distinguishing between two or more things or processes based on specific characteristics.