The Algebraic Equation for the Direct Materials Price Variance Is

question 144

Multiple Choice

The algebraic equation for the direct materials price variance is

• A)Direct materials price variance = AQpurch × (AP - SP)
• B)Direct materials price variance = SQpurch × (AP - SP)
• C)Direct materials price variance = SP × (AQpurch - SQpurch)
• D)Direct materials price variance = AP × (AQpurch - SQpurch)

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Definitions:

Higher Price

The strategy of setting the cost of a product or service above the average market price to signal higher quality or to cover higher production costs.

Market Segments

Market segments consist of individuals or entities grouped together based on shared traits or needs, which lead them to desire comparable products and services, reflecting similar preferences, attributes, or actions.

Broad Array

A wide range or selection of items or options available within a category or across different categories.

Differentiation Strategy

A business approach that involves making a product or service stand out from competitors by highlighting its unique qualities.