A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing wastage of valuable direct materials
The production manager decided to purchase a higher grade of materials that would be more reliable, but he was worried that the cost of the new materials might negatively affect operating income. This would produce a(n) ________.
A) unfavorable direct materials cost variance
B) favorable direct labor cost variance
C) favorable direct labor efficiency variance
D) unfavorable direct materials efficiency variance
A
You might also like to view...
Relate—Crosstabs allows your XL Data Analyst software to perform a cross-tabulation analysis
Indicate whether the statement is true or false
If you know that when you retire next year your pension amount will be determined by a formula, and that you will receive $3500/month, your employer has provided you with a defined ____________________ plan.
Fill in the blank(s) with the appropriate word(s).
A short update on a current project requested during a meeting without advance notice is an example of a(n) _____
A) ?manuscript presentation B) ?memorized presentation C) ?systematic briefing D) ?oral briefing
According to the Keown book, what are the three primary reasons for maintaining financial records?
What will be an ideal response?