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:

Trade

The exchange of goods, services, or both between two parties, either within an economy or between economies.

Mississippian Societies

Pre-Columbian Native American cultures that thrived in the Mississippi Valley, known for their large earthen mounds and complex societal structures.

De Soto

A Spanish explorer and conquistador, Hernando de Soto, known for his expeditions in the Americas, including the southeastern United States.

Decline

Decline refers to the process of decreasing in quality, quantity, or importance over a period of time.