Why Is the Direct Materials Price Variance Based on the Quantity

question 72

Multiple Choice

Why is the direct materials price variance based on the quantity of materials purchased,but the direct materials quantity variance on the quantity of materials used?

• A)Managers need to isolate variances and take corrective action as soon as possible.
• B)Production managers are only interested in the quantity purchased.
• C)It is a simpler process to calculate the quantity variance on what is purchased.
• D)All of these ans choices are correct.

---

Definitions:

Sharia

The moral code and religious law of Islam, governing both personal conduct and legal matters.

Stoning to Death

An ancient and severe form of capital punishment where a group throws stones at a person until they die. This method is widely condemned as inhumane by international human rights organizations.

Fornication and Adultery

Fornication and Adultery refer to sexual activities outside of marriage, where fornication is between unmarried individuals and adultery involves at least one married person.

Job Specialization

The process of focusing one's occupational concentration on a specific area of expertise, increasing efficiency and effectiveness in that domain.