The Materials Price Variance for an Item Is the Difference

question 118

Multiple Choice

The materials price variance for an item is the difference between its actual price and its standard cost

• A)divided by the actual quantity.
• B)multiplied by the standard quantity allowed.
• C)multiplied by the difference between the actual quantity and the standard quantity.
• D)multiplied by the actual quantity used.

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Definitions:

Note Receivable

A written promise that one party will pay another party a specified sum of money, either on demand or at a set future date.

Promissory Note

A financial instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Accounts Receivable

Funds that customers owe to a business for products or services already provided but not yet compensated for.

Maker

The entity that issues or creates a promissory note and agrees to pay the note's amount to a specified party.