What Does a Favorable Direct Materials Price Variance Indicate

question 30

Multiple Choice

What does a favorable direct materials price variance indicate?

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

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Definitions:

Three Parts

A division or breakdown of something into three distinct components or sections.

Summarize

The process of condensing a larger piece of content into a shorter version that retains the original material's principal points.

Information

Data, facts, or knowledge provided or learned about something or someone.

Structure

The arrangement of and relations between the parts or elements of something complex.