Examlex
Which of the following values would most likely interest a shareholder?
Total Direct Materials Cost Variance
The difference between the budgeted cost of direct materials and the actual cost incurred for the materials.
Direct Materials
Raw materials that are directly used in the manufacturing of a product and can be easily traced to it.
Controllable Variance
The difference between expected and actual costs that managers have the power to influence directly.
Direct Labor Rate Variance
This refers to the difference between the actual cost of labor and the expected (or standard) cost of labor used in producing goods.
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