Unfavourable price variances can occur because of:
A) Rising prices of finished goods
B) Increases in raw materials efficiency
C) Price increases in raw materials
D) Oversupply of raw materials

Question

Quizplus · Accepted Answer

Unfavourable price variances occur when the cost of inputs, such as raw materials, increases beyond what was expected or budgeted. This leads to higher costs than planned, negatively impacting financial performance.

Unfavourable Price Variances Can Occur Because Of