Which Formula Is Used to Calculate the Materials Usage Variance

question 27

Multiple Choice

Which formula is used to calculate the materials usage variance?

• A)(standard price × actual quantity) − (standard price × standard quantity)
• B)(standard price × standard quality) − (standard price × actual quantity)
• C)(actual price × actual quantity) − (standard price × actual quantity)
• D)(actual price × standard quantity) − (actual quantity × standard price)

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Definitions:

Interest Rate

The percentage charged on the total amount of borrowed money or paid on invested capital.

Compounding Periods

The frequency with which interest is added to the principal balance of a financial instrument, affecting the total interest earned or paid over time.

Periodic Payments

Regular payments made over a determined period, such as monthly rent or mortgage payments.

Financial Calculator

A specialized calculator designed to perform financial functions, such as calculating interest rates, loan payments, and investment values.