A favorable direct materials price variance and an unfavorable direct materials quantity variance might indicate

A favorable direct materials price variance and an unfavorable direct materials quantity variance might indicate that the amount of direct materials or inputs actually used in the production is lower than the expected or standard quantity or amount to be normally used in production.

Explanation:

A favorable direct material price variance basically implies different than usual or standard variation in the price of raw materials and factor inputs used in the production process.From a business or economic standpoint,it indicates that the amount or quantity of materials and factor inputs employed in the production of any product or services is actually less than the standard or expected quantity or amount to be used in the production.It perhaps might also indicate an unusual or unexpected reduction in the production or manufacturing costs or expenses

C. Liquidity

Explanation: