Answer the following based on the above:

1. Why did Brandon Faust purchase the large quantity of raw materials?

2. Do you think this behavior was the objective of the price standard? If not, what is the objectives?

3. Suppose that Brandon is right and that the only way to meet the price standards is through the use of quantity discounts. Also, assume that using quantity discounts is not desirable practice for this company. What would you do to solve this dilemma?

4. Should Brandon be fired? Explain your reasoning?

Ch. 10 Standard Costing & Variance Analysis Variances and Ethics in the Workplace Paige Jamieson was furious. She was about ready to fire Brandon Faust, her purchasing agent. Just a month ago, she had given him a salary increase and a bonus for his performance. She h been especially pleased with his ability to meet or beat the price standards. But now, she found out that it was because of a huge purchase of raw materials. It would take months to use that inventory, and there was hardly any space to store it. In the meantime, space had to be found for the other materials supplies that would be ordered and processed on a regular basis y, it was a lot of capital to tie up in inventory-money that could have been used to help finance the cash needs of the new product just coming online. Her interview with Brandon was frustrating. He was defensive, arguing that he thought she wanted those standards met and the means were not important. He also pointed out that quantity purchases were the only way to meet price standards. Otherwise, an unfavorable materials pric variance would have been realized. Required