What Does a Favorable Direct Materials Cost Variance Indicate

question 66

Multiple Choice

What does a favorable direct materials cost variance indicate?

• A) The actual quantity of direct materials used was less than the standard quantity.
• B) The actual cost of direct materials purchased was less than the standard cost of direct materials purchased.
• C) The actual cost of direct materials purchased was greater than the standard cost of direct materials purchased.
• D) The actual quantity of direct materials used was greater than the standard quantity.

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Definitions:

Oceania

A geographic region comprising the islands of the tropical Pacific Ocean, including Melanesia, Micronesia, Polynesia, and Australasia.

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The physical structure of a human being, encompassing the skeletal, muscular, circulatory, and numerous other systems.

Asmat

A group of people living in the Papua region of Indonesia, known for their woodcarving and other artworks.

Moai

Large, blocky figural stone sculptures found on Rapa Nui (Easter Island) in Polynesia.