Day: February 15, 2023

Which would be the reason for an adverse material usage variance?

Select ONE answer:

1. Production has been at a lower level than budgeted.
2. The company has paid its suppliers more for the material than planned.
3. The material has been used inefficiently in the factory.
4. There has been difficulty in obtaining the material from suppliers.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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