A Total Materials Variance Is Analyzed in Terms of

question 149

Multiple Choice

A total materials variance is analyzed in terms of

• A) price and quantity variances.
• B) buy and sell variances.
• C) quantity and quality variances.
• D) tight and loose variances.

---

Definitions:

Perfectly Elastic

This describes a situation where a small change in price leads to an infinite change in the quantity demanded or supplied.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly in response to a change in price.

Total Revenue

The total amount of money a firm receives by selling goods or services.