The Materials Usage Variance Is Calculated by the Equation

question 33

Multiple Choice

The materials usage variance is calculated by the equation

• A)(Standard Price ´ Actual Quantity)- (Standard Price ´ Standard Quantity).
• B)(Standard Price ´ Standard Quantity)+ (Standard Price ´ Actual Quantity).
• C)(Actual Price ´ Actual Quantity)- (Standard Price ´ Actual Quantity).
• D)(Actual Price ´ Standard Quantity)+ (Actual Quantity ´ Standard Price).
• E)None of these.

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Definitions:

Amount Incorrectly

A term relating to a numerical value or sum that has been calculated, reported, or entered wrongly.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure a company's bookkeeping system is mathematically correct.

Chart of Accounts

An organized list of all accounts in an entity’s financial system, used for classifying transactions.

Numbering System

A structured method for assigning unique identifiers to items to facilitate organization, tracking, and retrieval.