Which of the following is not a reason for a direct materials quantity variance?

A) malfunctioning equipment
B) purchasing of inferior raw materials
C) increased material cost per unit
D) spoilage of materials

A persuasive message that seems appropriate in the culture of the organization is likely to be appropriate in other organizations.

Culture is a pattern of beliefs that is automatically transmitted to other human beings.

Which of the following is LEAST likely to occur during commoditization?

A) Competitive advantages come from cost leadership.
B) Customer loyalty and brand preferences increase.
C) Product differentiation becomes difficult.
D) Competition is mainly based on price.

When using a periodic inventory system, a physical inventory is required.

The PSAB has identified a number of key characteristics of public sector entities. Which of the following is not one of these characteristics?

A) Have non-exchange transactions
B) Importance of budgets
C) Legislated financial framework
D) May have equity ownership