What Does a Favorable Direct Materials Cost Variance Indicate

question 66

Multiple Choice

What does a favorable direct materials cost variance indicate?

• A)The actual quantity of materials used was less than the standard quantity.
• B)The actual cost of materials purchased was less than the standard cost of materials purchased.
• C)The actual cost of materials purchased was greater than the standard cost of materials purchased.
• D)The actual quantity of materials used was greater than the standard quantity.

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Definitions:

Parabola

A symmetrical, curved plane figure defined as the locus of points equidistant from a fixed point (focus) and a fixed straight line (directrix).

Graph

A visual representation of data, relationships, or functions, typically displayed using lines, bars, or points on a coordinate system.

Second-Order Model

A model that includes squared terms of the predictors, allowing the model to capture curvature in the relationship between the predictors and response.

Predictor Variables

Variables in statistical models that are used to predict or explain changes in the dependent variable.