Which of the following is likely to be related to an unfavourable direct materials price variance?
A) Standard costs were determined correctly.
B) the negotiating skills of the marketing manager
C) unexpected price decreases in direct materials
D) Actual direct material purchases were in larger quantities than normal, resulting in receiving volume discounts.
E) Materials were purchased based on a competitive bid.

Question

Quizplus · Accepted Answer

The negotiating skills of the marketing manager can impact the prices at which materials are purchased. Poor negotiation could lead to higher prices, resulting in an unfavorable price variance.

Which of the Following Is Likely to Be Related to an Unfavourable