A Favorable Materials Price Variance Would Occur When The

question 45

Multiple Choice

A favorable materials price variance would occur when the:

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

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Definitions:

Third-party Financing

Refers to funding provided by an entity that is neither the borrower nor the direct provider of goods or services, often used in sales agreements to facilitate purchases.

Perfect Tender Rule

A principle in contract law requiring goods delivered under a sales contract to exactly meet the terms of the agreement.

Contract Specifications

Detailed, precise descriptions of the terms, conditions, and obligations agreed upon by parties in a contract, often defining the scope, quality, and timelines of work or services.

Minor Flaws

Small defects or imperfections in an item or product that do not significantly affect its use or value.