Which One of the Following Statements Is True

question 34

Multiple Choice

Which one of the following statements is true?

• A) If the materials price variance is unfavorable then the materials quantity variance must also be unfavorable.
• B) If the materials price variance is unfavorable then the materials quantity variance must be favorable.
• C) Price and quantity variances move in the same direction. If one is favorable the others will be as well.
• D) There is no correlation of favorable or unfavorable for price and quantity variances.

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