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    Business
  3. Study Set
    ACCT Managerial
  4. Exam
    Exam 13: Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis
  5. Question
    GEO Inc.has an Unfavourable Direct Materials Price Variance
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GEO Inc.has an Unfavourable Direct Materials Price Variance

Question 67

Question 67

Essay

GEO Inc.has an unfavourable direct materials price variance.
A. Give two possible reasons for this variance.

B. Using one of the above reasons, how could this particular variance affect one of the other variances (ex. direct materials usage, direct labour rate, direct labour efficiency)?

Correct Answer:

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A. (picktwo)
blured image- unexpected increase in th...

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