The purchasing manager was able to bring down the cost of direct materials by purchasing direct materials of a slightly lower grade quality than the company had used previously. The lower grade of direct materials, however, meant a higher defect rate on the assembly line and a higher waste of direct materials during production, which in turn lowered operating income. This would have led to an). unfavorable direct materials efficiency variance favorable direct labor efficiency variance o favorable direct labor cost variance o unfavorable direct materials cost variance Which of the following is a step in the budget process? Controlling Acting O Planning All of the above are steps in the budget process. Which of the following is considered part of the Financial Budget? o Capital Expenditure Budget Budgeted Income Statement Sales Budget All of the above are considered part of the Financial Budget