If the Actual Price of Direct Materials Is $200 and the Standard

question 67

Multiple Choice

If the actual price of direct materials is $200 and the standard price of the direct materials is $180,

• A)There will be no direct materials quantity variance
• B)The direct materials quantity variance will be unfavorable
• C)The direct materials price variance will be favorable
• D)The direct materials price variance will be unfavorable

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Definitions:

Main-Purpose Rule

A legal principle that if the main purpose of a guarantor to sign a surety agreement is to secure a personal benefit, the agreement does not have to be in writing to be enforceable.

Secondary Obligation

An obligation that arises indirectly or as a result of another primary obligation, often in legal or financial contexts.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed to be enforceable.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by the party against whom enforcement is sought, to be legally enforceable.