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Smart Reasoning:

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Qaagi - Book of Why

Causes

Effects

Purchasing inferior materials ( low design qualitycan causefavorable price variances

buying lower grade material(passive) caused byA favourable material price variance

Fixed overhead and variable overhead should be consideredcausesthe material price variance

the . 23 - 1 Standard Costs and Balanced Scorecard Ex .(passive) is normally caused by34.The materials price variance

a discount for buying in bulk with fewer purchase ordersresultsin unfavorable material price variance

two situationscould resultin a favorable materials price variance

A purchasing manager may purchase cheap materialto createa favorable price variance

a cheaper priceresultingin a favorable direct material price variance

A deviation from any of these factors from what was assumed when the standards were setcan resultin material price variance

the purchase of a job lot of material(passive) caused bya favorable material price variance

to an unfavorable direct materials quantity variancemight leadto an unfavorable direct materials quantity variance

Purchasing managers(passive) can be influenced byPurchasing managers

in an increase in total actual gross marginresultedin an increase in total actual gross margin

to inferior product quantitymay leadto inferior product quantity

to unhappy customers if the final product does not meet their expectations with respect to qualitycould leadto unhappy customers if the final product does not meet their expectations with respect to quality

from actions taken by the production supervisorcould have resultedfrom actions taken by the production supervisor

from bargaining for an especially good priceresultedfrom bargaining for an especially good price

from price being different to standardresultsfrom price being different to standard

an unfavorable labor efficiency variance and an unfavorable material quantity variancecould causean unfavorable labor efficiency variance and an unfavorable material quantity variance

a material efficience variance What can cause a labor price variance What can cause a labor efficience variance What can cause a variable overhead spending variance What can cause a variable overhead efficience variance What can cause a fixed overhead spending variance What can cause a production volume variancecan causea material efficience variance What can cause a labor price variance What can cause a labor efficience variance What can cause a variable overhead spending variance What can cause a variable overhead efficience variance What can cause a fixed overhead spending variance What can cause a production volume variance

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Smart Reasoning:

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