The Quantity Variance for Direct Materials Can Be Computed by Multiplying

question 45

Multiple Choice

The quantity variance for direct materials can be computed by multiplying the standard price by the difference between the ________.

• A) standard inputs allowed and expected inputs allowed at actual output
• B) quantity of inputs actually used and the quantity of inputs that should have been used for the expected output
• C) standard inputs allowed and expected inputs allowed for expected output
• D) quantity of inputs actually used and the quantity of inputs that should have been used for actual output

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Definitions:

Fishing

The activity of catching fish for commercial, recreational, or subsistence purposes.

Total Allowable Catch (TAC)

The overall limit set by a government or a fisheries commission on the total number of fish or tonnage of fish that fishers collectively can harvest during some particular time period. Used to set the fishing limits for individual transferable quotas (ITQs).

Pacific Halibut

A species of flatfish found in the North Pacific Ocean, known for its commercial and recreational value.

ITQs

Individual Transferable Quotas, a common market-based tool used to regulate fishing efforts and conserve fish stocks by allocating specific catch limits to fishers.