The Direct Material Price Variance Is Based on the Quantity

question 21

True/False

The direct material price variance is based on the quantity of materials purchased when the quantity purchased is different from the quantity used.

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Definitions:

Statute of Limitations

The law prescribing the time limit within which legal action must be brought for certain kinds of claims or rights to be enforced.

Illusory Promise

A statement that appears to be a promise but does not actually commit the promisor to any action, lacking enforceable obligations.

Charitable Subscription

A pledge or donation made to a charitable organization or cause.

Probability of Reliance

The likelihood that someone will depend on a particular piece of information or assertion in making a decision.