If a Company Has an Unfavorable Direct-Material Quantity Variance,then

question 79

Multiple Choice

If a company has an unfavorable direct-material quantity variance,then:

• A)the direct-material price variance is favorable.
• B)the total direct-material variance is unfavorable.
• C)the total direct-material variance is favorable.
• D)the direct-labor efficiency variance is unfavorable.
• E)any of the above variances can occur.

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Definitions:

Tax Bills

Statements of money owed to the government as a result of taxation.

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed, a concept crucial in understanding progressive taxation systems.

Federal

Pertaining to the central government, as opposed to state or local governments, especially regarding its relationship with the states in a federal system of government.

Taxable Personal Income

The amount of an individual's income that is subject to taxation after all deductions and exemptions, according to the governing tax laws.