Multiple Choice
A company is reviewing the variances for the previous month:
Which of the following statements is most likely to be INCORRECT?
A) There is an adverse variance overall. This could be due to the standard being out of date
B) The large favourable price variance on Material X indicates that buyers have found the best deal for the company
C) The favourable labour rate and adverse efficiency variances could be the result of using new, inexperienced staff
D) An adverse labour rate variance could be the result of a recent pay rise
Correct Answer:
Verified
Correct Answer:
Verified
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Q3: Direct materials price variance can be expressed
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