Which of the Following Will Result in an Unfavorable Direct

question 76

Multiple Choice

Which of the following will result in an unfavorable direct materials efficiency variance?

• A)The actual cost per unit of direct materials exceeded the standard cost of direct materials.
• B)The actual cost per unit of direct materials was less than the standard cost of direct materials.
• C)The actual quantity of direct materials used per unit exceeded the standard quantity of direct materials allowed per unit.
• D)The actual quantity of direct materials used per unit was less than the standard quantity of direct materials allowed per unit.

---

Definitions:

Service Fees

Charges levied for the provision of services by one party to another, covering the cost of labor, expertise, or other service-related resources.

Partial Goodwill Method

An accounting approach where goodwill is calculated only for the parent's share of the acquired entity and does not include goodwill attributable to non-controlling interests.

NCI

Stands for Non-Controlling Interest, which is a portion of a subsidiary not owned by the parent company, yet reflected in the consolidated financial statements.

Share Capital

The amount of money a company has raised by issuing shares to shareholders.