What Might You Assume If a Company Had a Favourable

question 4

Multiple Choice

What might you assume if a company had a favourable material price variance and an unfavourable material usage variance?

• A) Direct labour rate was higher than standard
• B) The actual material cost per unit was less than the standard cost per unit
• C) Less material per unit was used than the standard usage per unit
• D) All of the above

Understand the role of accounting in decision-making for internal users.

Recognize the importance of historical cost and measurement in accounting.

Understand the components of the fraud triangle and its relevance to ethical accounting practices.

Identify accounting principles and assumptions underlying financial records and reports.

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