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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Definitions:

Raven's Progressive Matrices

A non-verbal group test typically used to measure abstract reasoning and regarded as a non-verbal estimate of fluid intelligence.

Establishing Rules

The process of creating guidelines or principles that govern behavior within a specific context or organization.

Administering

The act of managing or supervising the execution, use, or conduct of something, often involving medications, operations, or policies.

Interpreting

The process of explaining or providing the meaning behind information, data, or observed behaviors.