A Materials Quantity Variance Is Unfavorable When

question 114

Multiple Choice

A materials quantity variance is unfavorable when:

• A) Standard quantity is less than actual quantity
• B) Actual price is greater than standard price
• C) Actual quantity is less than standard quantity
• D) Standard price is greater than actual price

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Definitions:

Marginal Tax Rates

The rate at which an individual or corporation's next dollar of taxable income is taxed.

Pre-Tax Loan Rate

The interest rate on a loan before taking into account any tax deductions that might apply.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.

Tax Loss Carryovers

Provisions that allow businesses or individuals to use their current losses to offset future profits or income for tax purposes, potentially reducing future tax liabilities.