If a Company Follows a Practice of Isolating Variances at the Earliest

question 29

Multiple Choice

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?

• A) When material is issued.
• B) When material is purchased.
• C) When material is used in production.
• D) When production is completed.