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:

Inductive Reasoning

A method of reasoning in which general principles are inferred from specific observations, moving from particular instances to broader generalizations.

Deductive Reasoning

involves drawing specific conclusions from general premises or known facts, following a logical progression from a general statement to a specific conclusion.

Deductive Reasoning

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.