A Favorable Price Variance for Direct Materials Indicates That

question 56

Multiple Choice

A favorable price variance for direct materials indicates that:

• A)a lower price than planned was paid for materials
• B)a higher price than planned was paid for materials
• C)less material was used during production than planned for actual output
• D)more material was used during production than planned for actual output

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Definitions:

Systems Theory

A conceptual framework that examines phenomena in terms of whole systems, acknowledging interactions, interdependencies, and patterns among components.

Wholeness

Pertains to the state of being complete, entire, or undivided; often used in the context of personal development or health.

Organization

Organization refers to a structured group of people with specific roles and responsibilities working towards common goals, or the act of arranging elements in a systematic way.

Collectivism

A cultural value that emphasizes the importance of the group over individual goals and the interdependence of members within a society or organization.