Select the Correct Statement from the Following,assuming Carmichael Company Had

question 55

Multiple Choice

Select the correct statement from the following,assuming Carmichael Company had a favorable direct materials price variance of $3,000 and an unfavorable direct materials usage variance of $2,000.

• A) The total direct materials variance is $1,000 unfavorable.
• B) The total direct materials variance is $5,000 favorable.
• C) The total direct materials variance is $5,000 unfavorable.
• D) The total direct materials variance is $1,000 favorable.

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Definitions:

Vertical Mergers

A type of merger between companies that operate at different stages within the same industry's supply chain.

Market Entry

The strategy or process employed by a company to start selling goods or services in a new market.

Economic Efficiency

A situation in which resources are allocated in the most beneficial way from the standpoint of society, maximizing production and minimizing waste.

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at promoting competition by preventing mergers and acquisitions that could potentially reduce competition.