(Appendix 10B)To Record the Purchase of Direct Materials,the General Ledger

question 187

Multiple Choice

(Appendix 10B) To record the purchase of direct materials,the general ledger would include what entry to the Materials Price Variance account?

• A) $1,500 credit.
• B) $1,500 debit.
• C) $6,000 credit.
• D) $6,000 debit.15,000 * 1.50 - 24,000 = $1,500 debit.

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Definitions:

Means-ends Calculation

A process of decision-making that involves analyzing the best way to achieve a desired outcome.

Practical Rationality

Decision-making processes and actions that are oriented toward achieving specific, practical outcomes rather than adhering to theoretical or ideological principles.

Theoretical Rationality

The capacity to apply reason and logic in constructing theoretical frameworks, often contrasting with practical reasoning used in everyday decision-making.

Substantive Rationality

A way of acting that takes into account the wider value or purpose of an action, rather than merely following a set of rules.