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

question 43

True/False

When using a standard costing system,the direct materials price variance is recorded at the time direct materials are purchased.

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Definitions:

Expected Value

Expected Value is a statistical concept that calculates the mean of all possible values of a random variable, weighted by their probabilities of occurrence.

Shopping Outlet

A retail store or complex that sells goods directly from manufacturers at reduced prices.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from their mean.

Variance

A measurement of the spread between numbers in a dataset, indicating how much the values differ from the mean.