When the Quantity of Materials Purchased Is Not Equal to the Quantity

question 32

Multiple Choice

When the quantity of materials purchased is not equal to the quantity of material used, most companies base the calculation of the material quantity variance on the:

• A) quantity of direct materials purchased.
• B) quantity of direct materials spoiled.
• C) quantity of direct materials that should have been used in achieving actual production.
• D) quantity of direct materials actually used.
• E) None of the answers is correct.

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