Question
Please answer. ASAP. 1. One of the primary reasons for using cost variances is: a. they diagnose the cause of a problem and what should
Please answer. ASAP.
1. One of the primary reasons for using cost variances is:
a. they diagnose the cause of a problem and what should be done to correct it
b. for superiors to communicate expectations to lower-level employees
c. to administer appropriate disciplinary action
d. for financial control of operating activities and understanding why variances arise
2. Which of the following factors would cause an unfavorable material quantity variance?
a. using poorly maintained machinery
b. using higher quality materials
c. using more highly skilled workers
d. receiving discounts for purchasing larger than normal quantities
3. An unfavorable price variance for direct materials might indicate:
a. that the purchasing manager purchased in smaller quantities due to a change to just-in-time inventory methods
b. congestion due to scheduling problems
c. that the purchasing manager skillfully negotiated a better purchase price
d. that the market had an unexpected oversupply of those materials
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