The Direct Materials Price Variance Is Often Based on Materials

question 28

True/False

The direct materials price variance is often based on materials purchased, rather than on materials used.

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Definitions:

Hours

A period of time equal to a twenty-fourth part of a day and night and universally understood to be 60 minutes.

Dimensional-analysis

A mathematical technique used to convert units of measurement without changing the dimensional or physical value.

Kilometers

A unit of length in the metric system equal to 1,000 meters, often used to measure distances.

Miles

Units of distance measuring 5,280 feet, or approximately 1.609 kilometers, commonly used in the United States.