A Favorable Direct Materials Price Variance Indicates Which of the Following

question 88

Multiple Choice

A favorable direct materials price variance indicates which of the following?

• A)The actual cost of materials purchased was greater than the standard cost of materials purchased.
• B)The standard cost of materials purchased was less than the actual cost of materials purchased.
• C)The Actual Quantity (AQ)of materials used was less than the standard quantity of materials used for actual production.
• D)The standard cost of materials purchased was greater than the actual cost of materials purchased.

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Definitions:

Median Earnings

The middle value of earnings in a given distribution, where half of the population earns less and the other half earns more.

Education

The systematic process of facilitating learning and acquiring knowledge, skills, values, beliefs, and habits through methods like teaching, training, storytelling, discussion, and directed research.

Marginal Productivity

The increase in output that results from a one-unit increase in an input, holding all other inputs constant.

Labor Unions

Organizations formed by workers to protect their rights and interests through collective bargaining with employers regarding wages, work hours, and working conditions.