If a worker drops the raw material during production and the raw material must be discarded, which variance is directly impacted?

Question

Quizplus · Accepted Answer

The materials efficiency variance is directly impacted because the raw material was not used efficiently due to the fact that it had to be discarded. The materials price variance would only be affected if the price of the raw material had changed, not if it was lost during production. The labour variances are not directly impacted by the loss of raw material.

If a Worker Drops the Raw Material During Production and the Raw