If the Actual Amount of Direct Materials Used Equals the Standard

question 75

Multiple Choice

If the actual amount of direct materials used equals the standard amount of direct materials that should have been used,the difference between the standard cost and actual cost of direct materials is called the

• A)price variance.
• B)rate variance.
• C)quantity variance.
• D)efficiency variance.

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Definitions:

Net Sales

The total revenue from sales of goods or services minus returns, allowances, and discounts.