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.

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Definitions:

Rigid

Describes something that is stiff and inflexible, unable to bend or be forced out of shape easily.

Team Core Values

Fundamental beliefs and principles that guide the behavior and decision-making processes within a team.

Team Involvement

The active participation and engagement of team members in the processes and activities aimed at achieving common goals.

Align

To adjust or arrange something in a straight line, or to bring into agreement or cooperation.