Managers of supplier departments ________.
A) view the budgeted rates positively if unfavorable cost variances occur due to price decreases outside of their control
B) view the budgeted rates negatively if favorable cost variances occur due to price decreases outside of their control
C) view the budgeted rates negatively if unfavorable cost variances occur due to price increases outside of their control
D) view the budgeted rates negatively if unfavorable cost variances occur due to price decreases outside of their control

Question

Quizplus · Accepted Answer

Managers of supplier departments are likely to view budgeted rates negatively if unfavorable cost variances occur due to price increases outside of their control because it reflects poorly on their department's performance, even though they had no control over the price increases.

Managers of Supplier Departments ________