If the Standard to Produce a Given Amount of Product

question 72

True/False

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials quantity variance is $1,000 unfavorable.

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Definitions:

Financial Statements

Reports that summarize the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Managerial Accounting

A branch of accounting focused on providing financial information within a company to assist in decision-making, planning, and control.

Decision Makers

Individuals or entities that have the authority to make choices or form policies within organizations, significantly impacting its direction and operations.

Days' Sales

A financial metric that estimates the average time it takes for a company to turn its inventory into sales.