An unfavourable materials usage variance may be caused by
A)excessive rework.
B)a special price offered by suppliers.
C)use of experienced workers.
D)none of the above.

Question

Quizplus · Accepted Answer

Excessive rework can lead to an unfavourable materials usage variance because it involves using more materials than originally planned, which results in higher costs. Options B and C may result in a favourable variance, but not necessarily an unfavourable one. Option D is incorrect because at least one of the other options (A) leads to an unfavourable materials usage variance.

An Unfavourable Materials Usage Variance May Be Caused by