The Materials Price Variance Is Computed Using the Equation

question 114

Multiple Choice

The materials price variance is computed using the equation

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

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Definitions:

Sales

The exchange of goods or services for money, constituting the primary source of revenue for a business.

Percent Change

A mathematical calculation that expresses the degree of change over time as a percentage.

Prepaid Insurance

An asset account that represents the cost of insurance paid in advance, which is expensed over the period the insurance coverage pertains to.

Account Group

A classification system used in accounting to organize similar accounts together, facilitating the management and reporting of financial information.