A favourable efficiency variance for direct materials might indicate:
A)a lower-priced supplier was used.
B)that lower-quality materials were purchased.
C)an over-skilled workforce.
D)poor design of products or processes.

Question

Quizplus · Accepted Answer

A favourable efficiency variance for direct materials indicates that less material was used than expected, which could be due to an over-skilled workforce using materials more efficiently.

A Favourable Efficiency Variance for Direct Materials Might Indicate