An Unfavorable Materials Quantity Variance Would Occur If

question 130

Multiple Choice

An unfavorable materials quantity variance would occur if

• A) more materials were purchased than were used.
• B) actual pounds of materials used were less than the standard pounds allowed.
• C) actual labor hours used were greater than the standard labor hours allowed.
• D) actual pounds of materials used were greater than the standard pounds allowed.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.

Income Statement

A financial statement showing a company's income, expenses, and profits over a specified period, typically a quarter or year.

EBIT

Earnings Before Interest and Taxes is a measure of a firm's profitability that excludes interest and income tax expenses.

Operating Profit

Profit generated from a company's core business operations, excluding deductions of interest and taxes.