When the Actual Cost of Direct Materials Used Exceeds the Standard

question 100

True/False

When the actual cost of direct materials used exceeds the standard cost, the company must have experienced an unfavorable direct materials price variance.

---

Definitions:

Trichromatic Theory

A theory of color vision that proposes the human eye has three types of receptors, each sensitive to red, green, or blue light, which when combined can produce the perception of any color.

Colour Vision

The ability of the visual system to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light into electrical signals sent to the brain.

Absorbs Light

The process by which a material takes in light energy without reflecting it, often converting it into heat.