The use of low-quality raw materials is likely to result in an unfavorable material quantity variance and a favorable material price variance.

Question

Quizplus · Accepted Answer

This is because the use of low-quality raw materials is likely to result in the production of fewer units of the product, which leads to an unfavorable material quantity variance. However, the low-quality raw materials may be cheaper, resulting in a favorable material price variance.

The Use of Low-Quality Raw Materials Is Likely to Result