Variance mcq on material usage variance

1. Is wrong because if it is quality material it will not cause an adverse usage variance, and anyway it would not be due to the poor perforce of the production manage because he does not do the purchasing.

3. Is wrong because the purchasing is not the responsibility of the production manager.

5 is wrong because the cost will not affect the usage variance.

6 is wrong because machine breakdowns are due to the machine maintenance manager, not the performance of the production manager.

The correct answers are 2 and 4. Here is the explanation for each option
The book could be wrong

Selection of new supplier offering quality for lower prices:
This is incorrect because if the quality is maintained, it should not lead to an adverse usage variance. Additionally, the selection of suppliers is the responsibility of the material purchase manager, not the production manager.

Inadequate training of newly recruited staff in the production department:
This is correct. Poorly trained staff may use materials inefficiently, leading to higher wastage and an adverse usage variance. This reflects poor performance by the production manager, who is responsible for ensuring that staff are adequately trained.

Reduced quality material bought:
I think this is incorrect in this context because the responsibility for purchasing materials lies with the material purchase manager, not the production manager. While reduced quality materials can lead to higher wastage, it does not indicate poor performance by the production manager.
But the publisher thinks differently

Changes in production process causing extra material losses:
This is correct. If the production process is altered in a way that increases material wastage, it can lead to an adverse usage variance. This would indicate poor performance by the production manager, who is responsible for managing the production process.

Movement in exchange rate causing more expensive materials:
This is incorrect because changes in material costs due to exchange rate fluctuations do not affect the amount of material used. This would be a price variance issue, not a usage variance.

Machine breakdown due to delays in annual maintenance schedule:
This is incorrect because machine maintenance is the responsibility of the machine maintenance manager. While machine breakdowns can affect production, they do not directly indicate poor performance by the production manager in terms of material usage.

Your most welcome