Charles Malone Recently Renewed His Card Membership at DiscountMania

question 166

Multiple Choice

Charles Malone recently renewed his card membership at DiscountMania. The card has an annual $40 fee, but Charles believes that it pays for itself because he receives good prices on electronics, contact lenses, and even tires for his car. Shortly after renewing the card, Charles began receiving calls from collection agencies claiming that he owed money. With the help of others, he learned that another Charles Malone also owned a DiscountMania card, and wrote checks with insufficient bank funds when making purchases. DiscountMania had linked Charles' personal information with the other Charles Malone's personal information. Charles experienced .

• A)Buyer myopia
• B) Database fraud
• C) Information trafficking
• D)Identity theft

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Definitions:

Direct Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the expected quantity, based on standards.

Total Direct Materials Cost Variance

The difference between the actual costs of direct materials used in production and the expected (or standard) costs.

Direct Materials Price

The cost of raw materials and components required for the manufacture of a product.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.