How Is the Direct Materials Price Variance Calculated

question 69

Multiple Choice

How is the direct materials price variance calculated?

• A)The difference in quantities multiplied by the actual price of the input.
• B)The difference in prices multiplied by the actual quantity of the input.
• C)The actual amount of direct materials purchased divided by the actual quantity.
• D)The actual quantity of direct materials purchased divided by the per unit price.

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Definitions:

Unlimited Liability

A legal obligation where business owners and investors are personally responsible for all of the debts of the business.