Which of the following would NOT explain a favourable direct materials usage variance?
A、Using a higher quality of materials than that specified in the standard. B
A、reduction in materials wastage rates.
C、An increase in suppliers' quality control checks.
D、Achieving a lower output volume than budgeted.
A、Using a higher quality of materials than that specified in the standard. B
A、reduction in materials wastage rates.
C、An increase in suppliers' quality control checks.
D、Achieving a lower output volume than budgeted.
【参考答案及解析】
The correct answer is: Achieving a lower output volume than budgeted. The direct materials usage variance compares the standard material usage for the actual production with the actual material used. This means that the budgeted output volume is not relevant because it is not included in the calculation of the variance. Using higher quality materials and increasing quality control checks are both likely to lead to a reduction in wastage rates which will lead to lower usage and a favourable materials usage variance.
The correct answer is: Achieving a lower output volume than budgeted. The direct materials usage variance compares the standard material usage for the actual production with the actual material used. This means that the budgeted output volume is not relevant because it is not included in the calculation of the variance. Using higher quality materials and increasing quality control checks are both likely to lead to a reduction in wastage rates which will lead to lower usage and a favourable materials usage variance.