?This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version?of the exam they are taking.?
While a drag and drop style question is impossible to fully replicate within a paper based?medium, some questions of this style have been included for completeness.?
The following are potential causes of a material usage variance; drag the ones that could?properly explain an adverse usage variance and at the same time indicate poor?performance of the production manager into the box below.? ?
The business has separate managers for production, material purchase and machine?maintenance.
?? Selection of a new supplier offering similar quality for lower prices
?? Inadequate training of newly recruited staff in the production department
?? Movements in the exchange rates causing more expensive materials
?? Machine breakdown due to delays in the annual maintenance schedule
?? Reduced quality materials bought
?? Change in the production process causing extra losses of materials?