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Other Fields Homework Help Accounting Topic started by: Deprecated on Sep 20, 2016



Title: The purchasing manager was able to bring down the cost of direct materials by purchasing direct ...
Post by: Deprecated on Sep 20, 2016
The purchasing manager was able to bring down the cost of direct materials by purchasing direct materials of a slightly lower grade quality than the company had used previously. The lower grade of direct materials, however, meant a higher defect rate on the assembly line and higher wastage of direct materials during production, which in turn lowered operating income. This situation would lead to a(n) ________.
A) favorable direct labor efficiency variance
B) favorable direct materials efficiency variance
C) unfavorable direct labor cost variance
D) favorable direct materials cost variance


Title: Re: The purchasing manager was able to bring down the cost of direct materials by purchasing direct ...
Post by: .unplugged. on Sep 20, 2016
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Title: Re: The purchasing manager was able to bring down the cost of direct materials by purchasing direct ...
Post by: Deprecated on Oct 12, 2016
Makes perfect sense, thx