Accounting · Variance Analysis
Assertion (A): A favourable material price variance may not always indicate efficient purchasing. Reason (R): Lower material prices may result from purchasing inferior quality materials, affecting production efficiency.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is false but R is true.
- 2A is true but R is false.
- 3Both A and R are true and R is the correct explanation of A.✓
- 4Both A and R are true but R is NOT the correct explanation of A.
Correct answer
Both A and R are true and R is the correct explanation of A.
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