Why Is the Point of Purchase the Best Time to Compute

question 16

Multiple Choice

Why is the point of purchase the best time to compute material price variances?

• A)This is when the company is able to determine the total cost of production.
• B)This is when the cost of material will be known.
• C)This is when the company knows the amount of materials used in production.
• D)This is the only point when the company is able to determine a standard material price.

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