If Actual Direct Materials Costs Are Greater Than Standard Direct

question 5

Multiple Choice

If actual direct materials costs are greater than standard direct materials costs it means that

• A) actual costs were calculated incorrectly.
• B) the actual unit price of direct materials was greater than the standard unit price of direct materials.
• C) the actual unit price of raw materials or the actual quantities of raw materials used was greater than the standard unit price or standard quantities of raw materials expected.
• D) the purchasing agent or the production foreman is inefficient.

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The ability to maintain or improve systems and processes indefinitely without depleting resources or causing harmful environmental impacts.

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Raw materials and substances occurring in nature that can be used for economic gain, such as minerals, forests, water, and fertile land.

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