Which of the following may cause an unfavorable material variance?
I.More material was used than planned.
II.A company paid a higher price for materials than expected.
III.More materials were used than purchased.
A)I and II
B)II and III
C)I and III
D)I, II, and III

Question

Quizplus · Accepted Answer

Both options I and II can cause an unfavorable material variance. Option I represents an increase in the quantity of materials used, which may increase the total cost of production. Option II represents an increase in the price paid for materials, which also increases the total cost of production. Option III does not necessarily cause an unfavorable material variance on its own since using more materials than purchased might lead to more efficient production, but it is not a factor that directly contributes to an unfavorable material variance.

Which of the Following May Cause an Unfavorable Material Variance