ch 0 7 - 178) Give at least three good reasons why a...

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178) Give at least three good reasons why a favorable price variance for direct materials might be reported. Answer: Any three of the following: a. The purchasing manager skillfully negotiated a better purchase price. b. The purchasing manager changed to a lower-priced supplier. c. The purchasing manager purchased in larger quantities resulting in quantity discounts. d. The purchasing manager changed to lower-quality materials. e. An unexpected industry oversupply resulted in decreased prices for materials. f. Budgeted purchase prices were not carefully set. Diff: 3 Terms: price variance Objective: 4 AACSB: Analytical skills 179) Give at least three good reasons why an unfavorable efficiency variance for direct manufacturing labor might be reported.
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Answer: Any three of the following: a. More lower-skilled workers were scheduled than planned. b. Work was inefficiently scheduled. c. Machines were not properly maintained. d.
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ch 0 7 - 178) Give at least three good reasons why a...

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