MATS Lesson 8 (recap 7)

A decrease in material prices will cause ...................................................... variance

• an Adverse

• a Favourable

If more materials are wasted it will cause ...................................................... variance

• an Adverse

• a Favourable

If a more expensive direct materials are used it will cause ...................................................... variance

• an Adverse

• a Favourable

If the specifications are changed to use cheaper materials it will cause ...................................................... variance

• an Adverse

• a Favourable

If a lower paid grade of direct labour will cause ...................................................... variance

• an Adverse

• a Favourable

If a more efficient use of direct labour is used it will cause ...................................................... variance

• an Adverse

• a Favourable

During the recession direct labour agrees to work an extra hour a week for no pay will cause ...................................................... variance

• an Adverse

• a Favourable

If the cost of power for the machines increase it will cause ...................................................... variance

• an Adverse

• a Favourable

If selling prices are reduced it will cause ...................................................... variance

• an Adverse

• a Favourable

If there is a decrease in the number of units sold it will cause ...................................................... variance

• an Adverse

• a Favourable