If the Price Paid Per Unit Differs from the Standard

question 90

Multiple Choice

If the price paid per unit differs from the standard price per unit for direct materials, the variance is termed:

• A) variable variance.
• B) controllable variance.
• C) price variance.
• D) volume variance.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Common Stock

Common stock represents ownership shares in a corporation, entitling holders to vote at shareholder meetings and receive dividends.

Dividends

Disbursements from a company to its owners, typically representing a share of the earnings.

Short-term Speculation

Financial transactions or investments made with the expectation of significant returns in a short period, often characterized by high risk.