10.You are the Chel Accountant of Droid plc and have asked the production manager to explain a favourable materials usage variance Which of the following explanations for the variance would you reject? ........... OA. Higher quality raw materials were used OB. A lower output level than budget was achieved OC. Quality control checking standards were reduced OD. Raw materials wastage rates were reduced 8. Wren Ltd has decided to set up a shared services centre to allow staff headcount to be reduced. A disadvantage of such an approach is: OA There could be a lack of standardisation on data processing techniques OB The quality of the service provided is likely to reduce OC. There could be a loss of business specific knowledge OD. Managers would require a pay rise to manage the new service centre 32. TFR plc wishes to forecast future costs using linear regression analysis, regressing total costs against volume of output. After the regression was run the following statements were made 1. The correlation coefficient is +0.4 indicating that volume is not the only variable impacting total costs 2. Significant outliers may have distorted the linear relationship calculated 3. The positive correlation shows that increased volume causes total costs to increase How plausible are these statements OA All 3 statements are plausible OB. Only statements (1) and (3) are plausible OC. None of the statements is plausible OD. Only statements (1) and (2) are plausible