If You Know the Total Dollar Amount of Direct Materials

question 9

Multiple Choice

If you know the total dollar amount of direct materials purchased but not the actual unit price, which of the following can you use to calculate the unit price?

• A)Multiply the total units used by the standard unit price.
• B)Divide the total purchases amount by the actual number of units used.
• C)Divide the total purchases amount by the actual number of units purchased.
• D)Multiply the standard price per unit times the actual quantity used.

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Definitions:

Taxes

Compulsory financial charges or other levies imposed on an individual or a company by a governmental organization in order to fund various public expenditures.

Discretionary Income

Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities have been paid.

Disposable Income

The amount of money an individual or household has available for spending and saving after taxes have been deducted.

Net Income

The total earnings or profit of a business after subtracting all expenses, taxes, and costs.