Which One of the Following Statements Is True

question 34

Multiple Choice

Which one of the following statements is true?

• A) If the materials price variance is unfavorable then the materials quantity variance must also be unfavorable.
• B) If the materials price variance is unfavorable then the materials quantity variance must be favorable.
• C) Price and quantity variances move in the same direction. If one is favorable the others will be as well.
• D) There is no correlation of favorable or unfavorable for price and quantity variances.

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Definitions:

Hoovervilles

Shanty towns built by homeless people during the Great Depression in the United States, named after President Herbert Hoover, who was blamed for the economic plight that led to their conditions.

Homeless

Individuals or families lacking stable and permanent housing.

Reciprocal Trade Agreements Act

A 1934 U.S. law that allowed the president to negotiate tariff reductions with other countries to promote international trade.

American Tariffs

Taxes imposed by the United States on imported goods to protect domestic industries and generate revenue.