Q. An adverse material usage variance together with a favourable materials price variance could suggest that: (Solved)
1. We are paying the same for our materials but we are using more than expected
2. We are paying higher prices for our materials than expected
3. We are paying less for our materials than expected but we are using more materials
4. We are using less material than expected but in total we are paying more than we should
- a. We are paying the same for our materials but we are using more than expected