A Favorable Direct Materials Price Variance Indicates Which of the Following

question 59

Multiple Choice

A favorable direct materials price variance indicates which of the following?

• A)The actual cost of materials purchased was greater than the standard cost of materials purchased.
• B)The standard cost of materials purchased was less than the actual cost of materials purchased.
• C)The actual quantity of materials used was less than the standard quantity of materials used for actual production.
• D)The standard cost of materials purchased was greater than the actual cost of materials purchased.

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Definitions:

Task Responsibilities

The duties and obligations associated with a specific job or role, often outlined in a job description or assignment.

Work Standards

Established criteria or benchmarks defining the quality, quantity, and efficiency of work expected from employees within an organization.

Trusting Subordinates

The act of relying on the judgement, abilities, and actions of lower-level employees.

Concern For Task

The focus on completing tasks efficiently and effectively, often prioritized in management and leadership.