Accounting · Cost Accounting

Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: In standard costing, the procurement of lower-priced, substandard materials can result in a favorable Material Price Variance but typically triggers adverse Material Usage, Yield, and Labour Efficiency variances. Reason R: The use of inferior-quality materials results in a favorable Labour Efficiency Variance because workers generally process lower-grade inputs more rapidly than standard-quality materials. In the light of the above statements, choose the most appropriate answer from the options given below: