The Direct Materials Usage Ratio for a Given Period Is

question 137

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.

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