The Direct Materials Price Variance Is Calculated as

question 174

Multiple Choice

The direct materials price variance is calculated as

• A)the difference in Actual Quantities (AQ)multiplied by the Actual Price (AP)of the input.
• B)the Actual Quantity (AQP)of direct materials divided by the Actual Quantity (AQ).
• C)the difference in prices of the Actual Quantity Purchased (AQP)and the Actual Price (AP)multiplied by the Actual Quantity Purchased (AQP)and the Standard Price (SP)of the input purchased.
• D)the direct materials Actual Quantity Purchased (AQ)divided by the per unit price.

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Definitions:

Economic Well-Being

A measurement of how well individuals or societies can satisfy their needs and wants, typically assessed by factors like income, employment, and access to goods and services.

Military Spending

Financial outlay by a government for the maintenance and operation of armed forces, including expenses for salaries, equipment, and facilities.

GDP

The aggregate value, in monetary or market terms, of all end-use goods and services produced domestically within a specific period is what constitutes the Gross Domestic Product.

Inflation

The speed at which the overall price level of goods and services increases, thereby diminishing the buying power.