An unfavorable price variance for direct materials might indicate ________.
A) that the purchasing manager purchased in smaller quantities due to a change to just-in-time inventory methods
B) congestion due to scheduling problems
C) that the purchasing manager skillfully negotiated a better purchase price
D) that the market had an unexpected oversupply of those materials

Question

Quizplus · Accepted Answer

An unfavorable price variance for direct materials indicates that the actual price paid for materials was higher than the standard price. This could occur if the purchasing manager bought in smaller quantities, which often leads to higher prices due to lack of bulk discounts.

An Unfavorable Price Variance for Direct Materials Might Indicate ________