Which of the following may be the reason for a material usage variance
A. Negligence in the use of materials
B. Changes in basic prices of materials
C. Poor or improper machine handling
D. Wastage due to inefficient production methods
E. Change in product design requiring usage different from the standard
Choose the correct answer from the options given below:

Correct option is C

A material usage variance is a difference between the actual quantity of materials used and the standard quantity of materials that should have been used in a production process. There are several reasons why a material usage variance may occur:
1. Inefficient production processes: If the production processes are not efficient, more materials may be used to produce the same quantity of output, resulting in a higher material usage variance.
2. Poor quality materials: If poor quality materials are used in the production process, more materials may be needed to produce the desired quality of output, resulting in a higher material usage variance.
3. Machine breakdowns: Machine breakdowns may cause production delays and result in more materials being used than planned to compensate for the lost production time, resulting in a higher material usage variance.
4. Inaccurate standards: If the standard quantity of materials is set too high, it may result in a higher material usage variance. This may occur if the standard was based on incorrect assumptions, outdated information, or unrealistic expectations.
5. Theft or waste: Theft or waste of materials can lead to a higher material usage variance.