When Recording Direct Materials Usage,what Does an Unfavorable Direct Materials

question 15

Essay

When recording direct materials usage,what does an unfavorable direct materials efficiency variance represent? Will this variance have a debit or credit balance?

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Definitions:

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company.

August

The eighth month of the year in the Gregorian calendar.

Full Settlement

Full settlement is the process of completely resolving an obligation or debt through payment or another agreed-upon method, leaving no outstanding amounts.

Discount Period

The time frame in which a discount is offered for early payment on goods or services, or the period before a financial instrument reaches maturity.