A Firm's Purchasing Manager Bought Poor Quality Material at a Large

question 39

Multiple Choice

A firm's purchasing manager bought poor quality material at a large saving. Because of the lower quality of material, more scrap was produced and because of the extra labour hours required an additional employee had to be hired to assist in the cutting operation. Assuming only the facts given, what variance(s) would result?

• A) Favourable material price
• B) Favourable material price; unfavourable material quantity; unfavourable labour efficiency
• C) Favourable material price; unfavourable material quantity; unfavourable labour efficiency; unfavourable labour rate
• D) Favourable material price; unfavourable labour efficiency

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Definitions:

Second Energy Level

The energy level beyond the first in an atom where electrons can reside, typically holding up to eight electrons.

Electrons

Subatomic particles with a negative charge, orbiting the nucleus of an atom and involved in chemical bonds and electrical current.

Mass Number

The total number of protons and neutrons in the nucleus of an atom, which determines its atomic mass.

Protons

Particles with a positive charge found in the nucleus of an atom, playing a role in the atom's mass and total charge.