The explanation that lower-quality materials were purchased is MOST likely for

ACCOUNTING

Multiple Choice

Hector’s Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.

Flexible ------------Variances-------------

Budget Price Efficiency

Material A $20,000 $1,000U $1,200F

Material B 30,000 500F 800U

Material C 40,000 1,400U 1,000F


The explanation that lower-quality materials were purchased is MOST likely for

a. Material A

b. Material B

c. Material C

d. both Material A and C


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