a. Why could a quantity, efficiency, or price variance be favorable in the short-term but ultimately undesirable in the long-term?

b. Provide one specific, real-world scenario involving a short-term favorable materials quantity variance that illustrates your explanation?

c. Provide one specific, real-world scenario involving a short-term favorable labor efficiency variance that illustrates your explanation?

Answer rating: 100% (QA)

a i There are a number of reasons why a quantity efficiency or price variance could be favorable in the shortterm but ultimately undesirable in the longterm One reason is that the favorable variance m... View the full answer