In a manufacturing area of an organization; poor product design, problems with the quality of materials, and scheduling conflicts could result in
A)a favourable materials efficiency variance.
B)a favourable labour efficiency variance.
C)a favourable materials effectiveness variance.
D)an unfavourable materials effectiveness variance.
E)an unfavourable materials efficiency variance.

Question

Quizplus · Accepted Answer

Poor product design, problems with the quality of materials, and scheduling conflicts would result in a decrease in the efficiency of the manufacturing process, which would lead to an increase in the amount of wasted materials. This would result in an unfavourable materials efficiency variance. A and B are not correct since they are favourable variances, while C and D refer to materials effectiveness, which is not directly affected by these issues.

In a Manufacturing Area of an Organization; Poor Product Design