The Direct Materials Quantity Variance Is Part of the Direct

question 23

Multiple Choice

The direct materials quantity variance is part of the direct materials flexible budget variance that is caused by

• A)using more or less material than the standard quantity allowed for actual production.
• B)using more or less material than the standard quantity allowed for budgeted production.
• C)purchasing more inventory than used.
• D)paying more or less than the standard cost per unit for direct materials.

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Definitions:

Land Improvements

Expenses for enhancements made to a parcel of land to make it more usable, which do not directly include the land itself but, for example, landscaping, parking lots, and fences.

Depreciated

Refers to the reduction in value of an asset over time due to wear and tear or obsolescence.

Useful Life

The estimated period over which an asset is expected to be useful in the operations of a business before it is fully depreciated.

Broker Commission

A fee paid to a broker for executing a transaction or providing specialized services.