A purchasing manager might be tempted to buy inferior materials because it will create favorable material quantity variance.

Question

Quizplus · Accepted Answer

Material quantity variance measures the difference between the actual quantity of material used and the standard quantity expected to be used, given the level of output. Buying inferior materials might lead to a higher actual quantity used, resulting in an unfavorable variance, not a favorable one.

A Purchasing Manager Might Be Tempted to Buy Inferior Materials