Evaluate the Following: -2 - 7

question 78

Short Answer

Evaluate the following: -2 - 7

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Definitions:

Variances

Differences between planned or expected financial outcomes and the actual results.

Standard Direct Materials

The budgeted cost for direct materials which are the raw materials that can be directly attributed to the production of goods, used for budgeting and performance evaluation.

Actual Materials Price

The real cost incurred to acquire materials used in the production process, as opposed to the budgeted or standard cost.

Standard Price

A predetermined cost assigned to materials, used for budgeting and variance analysis.