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.

---

Definitions:

Numeric Values

Quantitative numbers assigned to variables or attributes, representing quantities, amounts, or ranges.

Latent

Refers to something that is present but not visible, apparent, or actualized; existing as potential.

Variables

In research, variables are any characteristics, numbers, or quantities that can be measured or quantified.

Z-score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.