The Direct Materials Cost and Efficiency Variances Make Up the Total

question 152

True/False

The direct materials cost and efficiency variances make up the total direct materials variance.

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Definitions:

Budgeted Disbursements

Planned financial outflows or payments calculated in advance as part of a budgeting process, often categorized and scheduled over a specific period.

Desired Balance

The target or goal for the balance of an account or budget at a specific point in time.

Budgeted Receipts

Expected cash or revenue amounts a business plans to receive over a certain period according to its budget.

Merchandise Inventory

Merchandise inventory includes goods held by a company that are ready for sale to customers.