Examlex
Assume a bond has been owned by four different investors during its 20-year history. Which one of the following is most apt to have been different for each of these owners?
Material Price Variance
The difference between the actual cost of materials and the standard cost, multiplied by the quantities purchased.
Standard Quantity
The preset amount of materials or inputs theoretically required to produce a single unit of product under normal operating conditions.
Materials Price Variance
The difference between the actual cost of materials used in production and the standard cost of those materials.
Direct Materials
Raw materials that are directly traceable to the finished product and constitute a significant part of its costs.
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