The Materials Price Variance for an Item Is the Difference

question 35

Multiple Choice

The materials price variance for an item is the difference between its actual price and its standard cost

• A) multiplied by the actual quantity purchased.
• B) multiplied by the standard quantity allowed.
• C) multiplied by the difference between the actual quantity and the standard quantity.
• D) divided by the actual quantity.

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Definitions:

Availability Heuristic

A cognitive bias that causes people to overestimate the likelihood of events based on their ability to recall examples.

Nuclear Power

The use of nuclear reactions to generate heat, which is then used in power plants to produce electricity without emitting greenhouse gases during the process.

Personal Judgment

The process of forming opinions or conclusions based on one's own perception, experience, or information.

Heuristics

Mental shortcuts or rules of thumb that the brain uses to simplify decision making, which can be efficient but may lead to cognitive biases.