The Standard Price and Quantity of Direct Materials Are Separated

question 14

Multiple Choice

The standard price and quantity of direct materials are separated because

• A) GAAP and IFRS reporting requires separation
• B) direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department
• C) standard prices are more difficult to estimate than standard quantities
• D) standard quantities change more frequently than standard prices

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Definitions:

Deficiency Needs

are basic requirements for physical and psychological well-being, including needs for food, safety, love, and esteem, as conceptualized by Maslow's hierarchy of needs.

Lower Needs

Fundamental physiological and safety requirements such as food, water, security, and shelter in Maslow's hierarchy of needs.

Self-actualized

A state in which a person is fully realizing their potential, including their talents, abilities, and personal qualities, as described in Maslow's hierarchy of needs.

Creative Talents

Innate or cultivated abilities that enable individuals to produce original ideas, solutions, or artistic expressions.