When Using a Standard Costing System,the Direct Materials Price Variance

question 8

True/False

When using a standard costing system,the direct materials price variance is recorded at the time direct materials are transferred to the production floor.

---

Definitions:

Acquiring Companies

Companies that acquire control of other companies by buying a majority of their stocks or assets, effectively making them subsidiaries.

Issued Capital

The total value of a company’s shares that have been issued or sold to shareholders.

Net Assets

The total assets of a company minus its total liabilities, indicating the actual value of a company's equity.

Acquisition

An acquisition involves one company purchasing most or all of another company's shares or assets, effectively taking control over the acquired company.