1. Which of the following is characteristic of variances?

   a.An unfavourable labour efficiency variance could result from using higher quality materials that result in fewer inspections.

   b.A favourable materials usage variance could result from not efficiently utilizing raw materials, thus causing waste.

   c.A favourable materials price variance could result from purchasing identical materials from another supplier at a lower price.

   d.A favourable labour rate variance could result from lower wage workers quitting.

2. Which department is responsible for setting price standards for materials and labour?

   a.Purchasing must consider the quantity of materials.

   b.Personnel must consider discounts, freight, and quality.

   c.It is the joint responsibility of operations, purchasing, personnel, and accounting.

   d.Purchasing must consider payroll taxes, fringe benefits, and qualifications.