The Formula to Compute the Direct Materials Price Variance Is

question 123

Multiple Choice

The formula to compute the direct materials price variance is to calculate the difference between

• A) Actual costs - (Actual quantity × Standard price)
• B) Actual cost + Standard costs
• C) Actual cost - Standard costs
• D) (Actual quantity × Standard price)- Standard costs

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Definitions:

Required Return

The minimum return an investor expects to achieve on an investment to compensate for its risk.

Dividend Growth Rate

The rate at which a company's dividend payments increase over time, often expressed as a percentage.

Dividends

Are the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Market-capitalization Rate

A valuation metric that assesses the total value of a company's outstanding shares by multiplying the stock price by the total number of shares.