Which of the followings is not a cause of 'Material Usage Variance'?

CS Executive · Cost and Management Accounting · PYQS · December 2020
Which of the followings is not a cause of 'Material Usage Variance'?
(A) Lack of due care in the use of materials
(B) Defective production necessitating additional materials for correction
(C) Abnormal wastage due to pilferage
(D) Purchase of material in Economic Order Quantity

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Standard Costing

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