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:

National Income

The total amount of money earned within a country, including wages, rent, interest, and profits, often considered a measure of the country's economic health.

Bartered Goods

Items or services traded between parties without the use of money as a medium of exchange.

Second-hand Cars

Vehicles that have been previously owned and used by one or more owners.

Current-dollar GDP

Gross Domestic Product measured in current prices, without adjusting for inflation or deflation.