For each description of a cost change in items a through \(g\), indicate whether the cause is due to (1) underlying cost behavior, (2) inflation or deflation, (3) supply or supplier cost adjustments, or (4) changes in quantities purchased.

a. A large manufacturer exceeded its variable overhead budget by 20 percent due to an unexpected spike in sales volume that required additional production runs. An office furniture retailer chartered alternative ships, specially designed for cost effectiveness, to ship overseas merchandise at a 20 percent cost reduction. An organic food retailer canceled advertising contracts with marketing consultants, and instead hired an in-house expert at a significant cost reduction. A consulting firm upgraded its cellular phone contracts and received substantially more data, faster speed, and higher bandwidth for a lower price.

e. A decrease in the domestic sales budget of a mid-sized manufacturer resulted in production running at less than capacity, which increased fixed costs per unit.

f. A restaurant chain experienced an increase in raw materials costs, when an E. coli breakout was attributed to contaminated romaine lettuce from its main supplier, causing the company to find higher priced, temporary supply solutions.

g. A large supplier of a retailer opened up a new distribution center, which allowed the retailer to order goods as needed, increasing efficiencies and reducing storage and handling costs by 10 percent.