Question: A project manager has been asked to provide an explanation regarding a $3,500 favorable material variance on a project. After further analysis, the project
A project manager has been asked to provide an explanation regarding a $3,500 favorable material variance on a project. After further analysis, the project manager was able to break down the material variance to an unfavorable price variable of $1,300 and a favorable quantity variance of $4,800 The best explanation of the variances is that the Multiple Choice purchasing department purchased a higher quality material, resulting in less wasted materials. human resources department failed to hire adequately trained workers causing materials to be wasted. decision by the purchasing department to use a new supplier resulted in the purchase of the materials for a lower price. excellent scheduling by the production department enabled the purchasing department to reduce its shipping costs.
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