A Material Usage Variance Is Calculated As

question 43

Multiple Choice

A material usage variance is calculated as:

• A) the difference in unit price × actual quantity of inputs.
• B) the difference in unit price × standard quantity of inputs.
• C) standard price × (actual quantity of inputs - standard quantity allowed for units of output).
• D) actual price × difference in quantity of inputs.

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Definitions:

Inventory

A complete list of items such as property, goods in stock, or the contents of a building.

Product Costs

Costs that are directly associated with the production of goods, including direct materials, direct labor, and manufacturing overhead.

Administrative Support

Operational support activities provided to help maintain the daily functioning of an organization or office.

Total Quality Management

A comprehensive approach to long-term success through customer satisfaction, focusing on continuous improvement in all organizational processes.