If Actual Direct Materials Costs Are Greater Than Standard Direct

question 5

Multiple Choice

If actual direct materials 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:

Bilateral Dissolution

Ending of a relationship by mutual agreement of both parties.

Incremental

Pertaining to gradual or step-by-step progression or increase, often used in the context of developments or changes.

Active Verbal

refers to the use of spoken words in a dynamic and engaging manner to communicate.

Invulnerable

means not susceptible to harm, damage, or being hurt, emotionally or physically.