CIMA P1 Question Answer
Which of the following would help to explain a favourable material price variance?
A decision to reduce the raw materials inventory during the period led to a reduced level of material purchases.
An increase in the quantity of material purchased resulted in unexpected bulk discounts.
The material purchased was of a higher quality than standard.
Improved processing methods meant that material purchases were lower than standard for the output achieved.
TESTED 06 Jan 2026
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