How Is the Flexible Budget Quantity of Direct Materials Calculated

question 144

Multiple Choice

How is the flexible budget quantity of direct materials calculated?

• A) The standard quantity of input per unit times the number of units actually made
• B) The standard quantity of input per unit times the number of units budgeted
• C) The number of units actually made times the direct materials price standard
• D) The budgeted quantity of units less the standard quantity of units

---

Definitions:

Complementary Merchandise

Products that are sold together or used jointly because they complement each other.

Broker

An individual or firm that acts as an intermediary, facilitating transactions between buyers and sellers for a fee or commission.

Internet Company

A business that primarily operates online, providing products or services through the web.

Merchant Wholesalers

Businesses that buy goods in bulk from manufacturers and sell them, usually in smaller quantities, to retailers or other businesses, but not directly to consumers.