The Direct Material Quantity Variance Is the Difference Between the Actual

question 18

True/False

The direct material quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price.The quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the standard price.

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Definitions:

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay creditors and distribute any remaining assets to the shareholders.

Liabilities

Financial obligations or debts owed by a business or individual to creditors.