What Does a Favorable Direct Materials Price Variance Indicate

question 68

Multiple Choice

What does a favorable direct materials price variance indicate?

• A) The actual quantity of materials used was less than the standard quantity.
• B) The actual cost of materials purchased was less than the standard cost of materials purchased.
• C) The actual cost of materials purchased was greater than the standard cost of materials purchased.
• D) The actual quantity of materials used was greater than the standard quantity.

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Definitions:

Dealer Margin

The difference between the price at which a dealer buys a product and the price at which they sell it, representing the dealer’s profit.

Body Armor

Protective clothing or equipment designed to absorb or deflect physical attacks, typically used by military personnel, law enforcement officers, and civilians in certain situations.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified time period.

The Kingdom

Often a reference to a realm or domain governed by a king, but without specific context, it's difficult to provide a precise definition.