When a Journal Entry Is Made to Record the Direct

question 95

Multiple Choice

When a journal entry is made to record the direct materials used, a debit to the Direct Materials Efficiency Variance

• A)indicates the variance is unfavourable.
• B)indicates the variance is favourable.
• C)is the difference between the actual Costs of Goods Sold and the budgeted Materials Control accounts.
• D)is the difference between the debits and credits of all materials related entries.
• E)also requires a debit to the materials control account.

---

Definitions:

Administrative Responsibility

The duty or obligation of managing and implementing decisions within an organization or government entity.

Interpretive Rules

Regulations issued by administrative agencies that clarify or interpret the statutory provisions they enforce or administer.

Legislative Rules

Regulations established by legislative bodies to guide the implementation and enforcement of laws.

Federal Administrative Agency

A body established by Congress that implements and enforces laws and regulations within a specific jurisdiction or area of federal responsibilities.