Which of the Following Is a Possible Reason Why Actual

question 130

Multiple Choice

Which of the following is a possible reason why actual prices might differ from standard prices,resulting in a direct materials price variance?

• A)The company may receive a discount for materials that are purchased in large quantities.
• B)The company may receive a reduced price from a new vendor to generate business.
• C)The vendors may change their prices as a result of changes in the market.
• D)All of these answer choices are correct.

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Definitions:

Special Journals

Accounting journals designed for recording a specific type of transaction in a more efficient manner, such as sales or purchases journals.