Accounting · Management Accounting
Which one of the following is UNLIKELY to be the reason for an adverse material price variance?
- 1An inexperienced purchase clerk ordered materials from four different suppliers
- 2A major supplier has introduced a discount scheme which had not been planned for✓
- 3To reduce waste, a higher grade of material has been purchased
- 4The budget incorporated an assumption of price inflation of 4% and the actual rate is 6%
Correct answer
A major supplier has introduced a discount scheme which had not been planned for
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