Which One of the Following Determines the Material Price Variance

question 115

Multiple Choice

Which one of the following determines the material price variance?

• A)The difference between actual price per unit and standard price per unit times the quantity of material purchased from suppliers
• B)The difference between actual price per unit and standard price per unit times standard quantity of material used for the achieved level of production
• C)The difference between actual quantity of material purchased and the actual quantity of material used times the standard price of material per unit
• D)The difference between actual quantity of material purchased and the actual quantity of material used times the actual price of material per unit purchased

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Definitions:

Cause-and-Effect Relationships

The principle that an action or event (cause) will produce a certain response or outcome (effect) in a given context.

Descriptive

Pertaining to the detailed description of characteristics, behaviors, or the setting of an event without imposing any interpretations or judgments.

Correlational Research

A method of research that examines the relationship between two or more variables to determine if a change in one is associated with a change in the other(s).

Cause-and-Effect Relationship

A connection between two events where one is the result of the other or others.