The Direct Materials Price Variance Is Calculated Using Which Three

question 38

Multiple Choice

The direct materials price variance is calculated using which three amounts?

• A)Actual quantity purchased, standard quantity purchased, actual price paid
• B)Actual quantity purchased, standard quantity purchased, standard price paid
• C)Standard quantity purchased, actual price paid, standard price paid
• D)Actual quantity purchased, actual price paid, standard price paid

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Definitions:

Liability

A legal obligation or responsibility that entails financial compensation or other actions to remedy damages or breaches of contract.

Certified Public Accountant

A professional accountant who has passed the required examination and met all other state and educational licensing requirements to be certified by the state.

Liabilities

Financial obligations or debts that a business or individual owes to others, which need to be settled over time.

Marketable Securities

Financial instruments that can be easily converted into cash, typically with high liquidity and short maturity periods.