If Actual Direct Material Costs Are Greater Than Standard Direct

question 96

Multiple Choice

If actual direct material costs are greater than standard direct materials costs, it means that

• A)actual costs were calculated incorrectly.
• B)the actual unit price of direct materials was greater than the standard unit price of direct materials.
• C)the actual unit price of raw materials or the actual quantities of raw materials used was greater than the standard unit price or standard quantities of raw materials expected.
• D)the purchasing agent or the production foreman is inefficient.

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Definitions:

Watson and Rayner

Refers to John B. Watson and Rosalie Rayner, psychologists known for their experiment on classical conditioning with "Little Albert," demonstrating that emotional responses could be conditioned.

Bounded Ethicality

The concept that cognitive biases, social pressures, and situational factors can limit an individual's ability to make ethical decisions, even when they have the intention to act ethically.

Ethical Blind Spots

Phenomena where individuals or organizations overlook ethical issues or moral consequences of decisions due to cognitive biases.

Underpaid

A condition in which an individual receives compensation less than what is considered fair or adequate for the work performed, based on industry standards or job requirements.