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.

---

Definitions:

Sewage Treatment

The process of removing contaminants from wastewater, primarily from household sewage, to produce an effluent that is suitable for discharge or reuse.

Suspended Solids

Particles that are not dissolved in liquid, floating or suspended in water or another liquid.

Physical Process

Natural phenomena or mechanisms that involve the physics of matter and can affect the environment and ecosystem.

Oxygen-demanding Wastes

Organic wastes that reduce the amount of dissolved oxygen in water, often resulting from industrial or agricultural processes.