The Direct Materials Price Variance Is Calculated Using Which of the Three

question 33

Multiple Choice

The direct materials price variance is calculated using which of the three amounts?

• A)Actual quantity purchased,standard quantity purchased,actual price paid
• B)Actual quantity purchased,standard quantity purchased,standard price paid
• C)Standard quantity purchased,actual price paid,standard price paid
• D)Actual quantity purchased,actual price paid,standard price paid

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported instead of adjustments to net income.

Sales Revenue

The total amount of money received by a company from selling goods or services before any expenses are deducted.

Balance Sheet Accounts

Accounts that are represented on the balance sheet, including assets, liabilities, and equity accounts.

Financing Activities

Involve transactions between a company and its investors and creditors, impacting the firm's capital structure.