Which of the following is not a valid possible cause of direct materials quantity variances?
A. Obtaining quantity discounts for large orders of materials
B. Poor functioning of machinery giving rise to excessive wastage
C. Better or worse quality of materials purchased
D. Increased/decreased level of quality checks on the production process
Answer: Option A
Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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