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Which of the following would be a reasonable explanation for an unfavorable materials price variance? Answer Yes or No for each possibility. Note this is
Which of the following would be a reasonable explanation for an unfavorable materials price variance?
Answer Yes or No for each possibility. Note this is just for an UNfavorable price variance
1. excessive spoilage (spoilage is when products needed to be discarded and rebuilt)
2. a discounted price offered by your normal supplier for a large order
3. use of more experienced workers than expected
4. an out-of date standard when inflation has pushed up materials costs
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