If Raw Materials Are Carried in the Direct Materials Inventory

question 70

Multiple Choice

If raw materials are carried in the Direct Materials Inventory at standard cost,then it is reasonable to assume that the

• A)price variance is recognized when materials are purchased.
• B)price variance is recognized when materials are placed into production.
• C)company does not follow generally accepted accounting principles.
• D)efficiency variance is recognized when the materials are purchased.
• E)efficiency variance is recognized when the materials are placed into production.

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Definitions:

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Oxytocin

A hormone and neurotransmitter involved in childbirth, lactation, and emotional bonding.

Positive Feedback

A process in which the end products of an action cause more of that action to occur in a feedback loop, amplifying the original action.