Which of the Following Is the Correct Formula for the Materials

question 137

Multiple Choice

Which of the following is the correct formula for the materials price variance?

• A) (Actual price of input - Budgeted price of input) x Budgeted quantity of input
• B) (Actual quantity of input used - Budgeted quantity of input allowed for actual output) x Budgeted price of input
• C) (Actual price of input - Budgeted price of input) x Actual quantity of input
• D) (Actual quantity of input used - Budgeted quantity of input allowed for actual output) x Actual price of input

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Definitions:

Trading Costs

Expenses incurred in the process of buying or selling securities, including commissions, spreads, and slippage.

Marketable Securities

Financial instruments that can be quickly converted into cash at market value, such as stocks, bonds, and Treasury bills.

Daily Interest Rate

The interest rate applied to a loan or investment for a single day, often used for calculating interest over short periods.