Assume That SQ = Standard Quantity,SP = Standard Price,AQ =

question 24

Multiple Choice

Assume that SQ = Standard Quantity,SP = Standard Price,AQ = Actual Quantity,and AP = Actual Price.The correct entry along with the equation to record the issuance and usage of materials,assuming a favorable materials usage variance,is as follows

• A)Work in Process SQ ´ SP Materials Usage Variance (AQ - SQ)SP
• Materials AQ ´ SP
• B)Work in Process SQ ´ SP Materials Usage Variance (AQ - SQ)SP
• Materials AQ ´ SP,
• C)Work in Process AQ ´ AP Materials Usage Variance (AQ - SQ)SP
• Materials AQ ´ SP.
• D)Work in Process AQ ´ AP Materials Usage Variance (AQ - SQ)SP
• Materials AQ ´ SP,
• E)None of these.

---

Definitions:

Introduction Stage

The initial phase of a product's life cycle, characterized by low sales growth as the product is being introduced to the market.

Decline Stage

The phase in a product's life cycle characterized by a decrease in sales and profitability, indicating the product is nearing the end of its market life.

Maturity Stage

A phase in the product life cycle where growth is diminished, and sales are steady or declining.

Test Marketing

The practice of testing new products in a controlled, limited market prior to a full-scale launch.