Use the Table for the Question(s)below

question 41

Multiple Choice

Use the table for the question(s) below.
Consider the following average annual returns:
-What is the excess return for the S&P 500?

• A)5.7%
• B)7.0%
• C)0%
• D)8.4%

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Definitions:

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used in production and the estimated quantity expected to be used, measured in terms of cost.

Direct Materials Purchases Variance

This measures the difference between the actual cost of direct materials purchased and the expected (or standard) cost of those materials.

Actual Results

The real outcomes or data achieved, as opposed to forecasts or projections.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost, used for budgeting and cost control.