Byron Products has a favorable materials price variance. Which of the following would be the least likely reason for this variance?
A) The company over budgeted the standard price for materials.
B) The company took advantage of quantity discounts from its suppliers.
C) The company's employees were more efficient with the use of their production time.
D) The company purchased a substandard material at a cheaper price.

Question

Quizplus · Accepted Answer

Efficiency in the use of production time would not directly affect the materials price variance, as this variance focuses on the cost paid per unit of material, not how efficiently the materials are used during production.

Byron Products Has a Favorable Materials Price Variance