Which one of the following statements is accurate?
Definitions:
Retained Earnings
The accumulated net income of a company that is retained by the company rather than distributed to shareholders as dividends.
Materials Price Variance
The difference between the actual cost of materials and the standard cost, multiplied by the quantity used.
Materials Quantity Variance
Represents the difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.
Raw Materials
Unprocessed or primary substances used in manufacturing to create finished goods.
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