Theft of raw materials is most likely to lead to
A) Direct materials price variance
B) Favorable direct materials price variance
C) Unfavorable direct materials efficiency variance
D) Favorable direct materials efficiency variance

Question

Quizplus · Accepted Answer

Theft of raw materials would result in a decrease in the quantity of raw materials used in production, which would lead to a negative (unfavorable) direct materials efficiency variance.

Theft of Raw Materials Is Most Likely to Lead to