What Does a Favorable Direct Materials Cost Variance Indicate

question 66

Multiple Choice

What does a favorable direct materials cost variance indicate?

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

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Definitions:

Conservative Decisions

Decision-making approaches that tend to be cautious and to favor current conditions or minimize risk.

Framing Bias

A cognitive bias where people decide on options based on if the choices are presented with positive or negative connotations.

Industrial Relations

The study and practice of managing the relationship between employers and employees, often focusing on collective bargaining, workplace disputes, and labor legislation.

Union Negotiators

Representatives of a labor union who engage in discussions with employers to establish terms of employment, wages, and workplace conditions for their members.