If the Total Materials Variance for a Given Operation Is

question 13

Multiple Choice

If the total materials variance for a given operation is favorable, why must this variance be further evaluated as to price and usage?

• A) There is no need to further evaluate the total materials variance if it is favorable.
• B) Generally accepted accounting principles require that all variances be analyzed in three stages.
• C) All variances must appear in the annual report to equity owners for proper disclosure.
• D) A further evaluation lets management evaluate the activities of the purchasing and production functions.

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Definitions:

Extinction

In behavior psychology, the process through which a conditioned response decreases or disappears after repeated exposure without the unconditioned stimulus.

Guilty But Mentally Ill

A legal verdict indicating that the defendant is guilty of the charges but was suffering from mental illness at the time of the crime.

Not Guilty By Reason Of Insanity

A legal defense asserting that a person should not be held criminally responsible for their actions due to mental illness.

Defendants Convicted

Individuals who have been found guilty of a crime by a court of law following a trial or plea agreement.