Examlex
Why is the sky blue?
Direct Materials Purchases Variance
The difference between the actual cost of direct materials purchased and the expected cost, based on standards set for quantity and price.
Actual Operations
The real-world activities carried out by a company, as opposed to planned or projected operations.
Materials Quantity Variance
The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost of the materials.
Standard Costs
Predetermined costs for products or services, used as a benchmark for performance evaluation.
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