The Materials Quantity Variance,in a Standard Cost System,is The

question 64

Multiple Choice

The materials quantity variance,in a standard cost system,is the:

• A)Difference between the actual and standard quantities.
• B)Difference between the actual and standard quantities multiplied by the actual unit price.
• C)Difference between the actual quantity used and the actual quantity purchased multiplied by the standard unit price.
• D)Difference between the actual and standard quantities multiplied by the standard unit price.

---

Definitions:

Strategic Item

A product or raw material critical to a company's business operations, often because it influences product quality or is a major cost driver.

Threshold Incentives

Threshold incentives are rewards or bonuses offered to encourage performance or purchases that exceed a specified level or threshold.

Rolling Time Horizon

A planning approach that continuously updates the planning period to include a new future period as the current period progresses or concludes.

Hockey Stick Phenomenon

A pattern observed in charts or graphs where a long period of steady but slow growth is suddenly followed by a sharp increase.