Which of the following situations may lead to a favorable direct materials price variance?
A)The purchasing manager was able to negotiate a lower purchase price for raw materials.
B)A vendor shipped a greater quantity of raw materials than ordered.
C)The purchasing manager paid a premium price for a higher quality of raw materials.
D)Raw materials waste was substantially reduced in the factory.

Question

Quizplus · Accepted Answer

When the purchasing manager negotiates a lower purchase price for the raw materials, it leads to a favorable direct materials price variance.

Which of the Following Situations May Lead to a Favorable