This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking.
While a drag and drop style question is impossible to fully replicate within a paper based medium, some questions of this style have been included for completeness.
The following are potential causes of a material usage variance; drag the ones that could properly explain an adverse usage variance and at the same time indicate poor performance of the production manager into the box below.
The business has separate managers for production, material purchase and machine maintenance.
Selection of a new supplier offering similar quality for lower prices
Inadequate training of newly recruited staff in the production department
Movements in the exchange rates causing more expensive materials
Machine breakdown due to delays in the annual maintenance schedule
Reduced quality materials bought
Change in the production process causing extra losses of materials
