Statement I

question 29

Multiple Choice

Statement I.The recent frequency of billion-dollar mergers and takeovers in the U.S.is part of a worldwide trend.
Statement II.If the international trend toward bigness through mergers continues,it is highly probable that in the not too distant future all large corporations will be considered multinationals.At that point no one will bother designating their national origin.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the standard cost, indicating how much was saved or overspent on materials.

Direct Material Used

Direct material used refers to the raw materials that are directly incorporated into a product being manufactured.

Materials Purchased

The total cost of raw materials bought for use in the production process.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the quantity expected, multiplied by the standard cost per unit.