For Control Purposes, It Is Usually Preferable to Calculate the Materials

question 104

Multiple Choice

For control purposes, it is usually preferable to calculate the materials price variance:

• A) At point of purchase (i.e., when the materials are purchased).
• B) At point of production (i.e., when the materials are issued to production).
• C) At the end of the accounting period.
• D) Only if the materials quantity variance is significant in amount.
• E) Only if it is controllable by operating managers.

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