An Unfavourable Direct Materials Mix Variance Results When Cheaper Direct

question 100

True/False

An unfavourable direct materials mix variance results when cheaper direct materials are substituted for more expensive direct materials.

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Definitions:

Firm

An enterprise like a corporation, partnership, or sole proprietorship involved in commercial, industrial, or professional operations.

AFC

stands for Average Fixed Cost, which is the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity of output produced.

Output Rises

Refers to an increase in the production level of goods and services over a certain period.

Output Rises

An increase in the production of goods and services within an economy.