The Direct Materials Usage Ratio for a Given Period Is

question 67

Multiple Choice

The direct materials usage ratio for a given period is:

• A) Defined as the ratio of quantity purchased to quantity used.
• B) Defined as the inverse of the materials quantity variance for the period.
• C) Entered into its own variance account at the end of the period.
• D) A useful indicator of performance by the manufacturing department.
• E) A useful indicator of performance of the purchasing department.

---

Definitions:

Authorized Means

Officially approved or recognized methods or procedures for achieving a specified end.

Acceptance

In contract law, the agreement by the party receiving an offer to the terms of that offer, leading to a binding contract.

Contract

A legally binding agreement between two or more parties that outlines obligations they must fulfill.

Without Reserve

In auctions, this refers to items being sold with no minimum bidding threshold, indicating they will be sold to the highest bidder regardless of the price.