An Unfavorable Materials Quantity Variance Would Occur If

question 130

Multiple Choice

An unfavorable materials quantity variance would occur if

• A) more materials were purchased than were used.
• B) actual pounds of materials used were less than the standard pounds allowed.
• C) actual labor hours used were greater than the standard labor hours allowed.
• D) actual pounds of materials used were greater than the standard pounds allowed.

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Definitions:

Intangible Assets

Non-physical assets that hold value, such as patents, trademarks, and goodwill.

Intangible Assets

Non-physical assets that possess value due to their intellectual or non-material nature, such as patents, trademarks, and goodwill.

Depreciation Method

A systematic approach used to allocate the depreciable amount of an asset over its useful life, such as straight-line or declining balance methods.

Depletion

The systematic allocation of the cost of natural resources over the period of their extraction and sale.