Material mix variance arises only when:
ASingle material is used
BMultiple materials are used
CPrice changes
DWorkers strike
Answer & Solution
Correct answer: B. Multiple materials are used
1. Mix variance compares the standard mix against the actual mix.
2. A mix can only be defined when more than one material enters the product.
3. With a single material, there is no mix to vary.
4. Hence mix variance arises only when multiple materials are used.
_Source: ICAI BoS Inter Paper 3, Ch 13 "Standard Costing", §13.5.1.3 ¶1_
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