The Difference Between the Actual Price and the Standard Price,multiplied

question 89

Multiple Choice

The difference between the actual price and the standard price,multiplied by the actual quantity of materials purchased,is the:

• A)direct materials spending variance.
• B)direct materials volume variance.
• C)direct materials price variance.
• D)direct materials quantity variance.

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Definitions:

Expected Rate

The predicted interest rate or return for an investment over a specific period.

Diversification Effects

The reduction in risk achieved by investing in a variety of assets, thus minimizing the impact of poor performance from any single asset.

Portfolio A

A specific collection of financial assets such as stocks, bonds, cash equivalents, and their mutual funds, owned by an individual or an institutional investor.

Portfolio B

Portfolio B is not a specific term but could refer to a theoretical or actual portfolio of investments selected as a part of an investment strategy or for analysis.