?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.?
A business is expanding rapidly and buying its material in a variety of countries in a variety?of currencies.? It has an exclusive supply delivery contract whereby the same logistics expert?makes all deliveries in to its warehouses on a cost plus basis.? It pays all delivery charges on?a per unit basis.?
Which of the following are valid explanations of an adverse material price variance?measured to include delivery costs as part of the cost per kg delivered??
Drag the correct items into the box below:
?? Exchange rate movements
?? Extra discounts agreed
?? Increased world-wide demand for the material
?? Extra supply of the material becoming available from new suppliers
?? World oil price rises
?? Increases in the dividends paid by the delivery business?