Favorable direct materials price variance


Which of the following are possible causes of a favorable direct materials price variance?

A. Materials prices increased unexpectedly due to industry shortage

B. Materials prices decreased unexpectedly due to industry oversupply

C. The purchasing manager bought in smaller lot sizes than budgeted, thus not obtainingthe purchase discounts that were factored in the budget.

D. All of the above are causes of a favorable direct materials price variance.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Favorable direct materials price variance
Reference No:- TGS064964

Expected delivery within 24 Hours