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:

Company Policy

Rules and guidelines, officially sanctioned by an organization, governing employee actions and organizational procedures.

Reason For Refusal

A rationale provided to explain why a request, offer, or proposal has been declined.

Weak Reason

an argument or justification that lacks sufficient evidence, strength, or clarity, thus reducing its persuasiveness.

Omit

To leave out or exclude something, either intentionally or forgetfully.