Max Company Has Developed the Following Standards for One of Its

question 49

Multiple Choice

Max Company has developed the following standards for one of its products. The following activity occurred during the month of October:
The company records materials price variances at the time of purchase. The direct materials price variance is

• A) $50,000 F.
• B) $50,000 U.
• C) $10,000 U.
• D) $10,000 F.

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Definitions:

Reinforcement

A concept in behavioral psychology where behavior is strengthened or weakened by the consequences that follow.

Punishment

The application of an undesirable stimulus or removal of a desirable one following a behavior, with the aim of decreasing that behavior's occurrence.

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud, focusing on unconscious motives, conflicts, and childhood experiences as determinants of personality and behavior.

Breadwinner

Traditionally, the family member whose earnings are the primary source of financial support for the household.