The use of high-quality raw materials is likely to result in a favorable efficiency variance and an unfavorable price variance.

Question

Quizplus · Accepted Answer

When high-quality raw materials are used, the resulting products are expected to have better quality and require less rework, leading to a favorable efficiency variance. However, high-quality raw materials also typically come at a higher cost, leading to an unfavorable price variance.

The Use of High-Quality Raw Materials Is Likely to Result