Which of the Following Is Not True Concerning Direct Materials

question 73

Multiple Choice

Which of the following is not true concerning direct materials variances?

• A) The sum of the price and usage variances will add up to the total materials variance only if the materials purchased is equal to the materials used.
• B) The materials price variance uses the actual quantity of materials purchased rather than the actual quantity of materials used.
• C) The materials price variance always uses the actual quantity of materials used rather than the actual quantity of materials purchased.
• D) The materials usage variance uses the actual quantity of materials used.
• E) Separate materials variances can be computed for each type of material used.

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