A Company That Records the Direct Materials Price Variance at the Time

question 36

Multiple Choice

A company that records the direct materials price variance at the time of purchase will record the use of direct materials (measured in kilograms) in the production process by crediting raw materials inventory for which of the following?

• A) Standard quantity of direct materials used for actual production times actual cost per kilogram
• B) Standard quantity of direct materials used for actual production times standard cost per kilogram
• C) Actual quantity of direct materials put into production times standard cost per kilogram
• D) Actual quantity of direct materials put into production times actual cost per kilogram

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Definitions:

Bimodal Data

A distribution of data showing two distinct peaks or modes, indicating two predominant values within the dataset.

Population Mean

The mean of all members of a whole population, representing the central tendency of the population data.

Sample Mean

The average of a set of observations or scores taken from a sample.

Skewed

Refers to a distribution that is not symmetric and has a tail that extends more towards one side than the other.