The Direct Materials Quantity Variance Is Calculated Using Which Three

question 138

Multiple Choice

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

• A)Actual quantity used, standard quantity allowed for actual production, actual price paid
• B)Actual quantity used, standard quantity allowed for actual production, standard price allowed
• C)Standard quantity used, actual price paid, standard price paid
• D)Actual quantity used, actual price paid, standard price paid

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Definitions:

Gross Margin Percentage

A profitability metric calculated as gross margin (sales minus cost of goods sold) divided by sales, expressed as a percentage.

Net Profit Margin Percentage

A financial metric that shows what percentage of a company's revenue remains as profit after all expenses are deducted.

Book Value per Share

The equity available to shareholders divided by the number of outstanding shares.

Dividend Yield Ratio

A measure demonstrating the annual dividend payout of a company in relation to its stock price.