The Total Materials Variance Is Equal to the

question 19

Multiple Choice

The total materials variance is equal to the

• A) materials price variance.
• B) difference between the materials price variance and materials quantity variance.
• C) product of the materials price variance and the materials quantity variance.
• D) sum of the materials price variance and the materials quantity variance.

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Definitions:

Profit Margin

A financial metric that measures the amount of profit made on a sale as a percentage of revenue, illustrating efficiency.

Retention Ratio

The retention ratio is a financial metric that measures the proportion of a company's earnings that are not distributed as dividends to shareholders but are instead reinvested in the business.

Debt-equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholder's equity.

Growth Rate

Growth rate refers to the percentage increase in the size or value of something over a specific period.