The Standard Price and Quantity of Direct Materials Are Separated

question 14

Multiple Choice

The standard price and quantity of direct materials are separated because

• A) GAAP and IFRS reporting requires separation
• B) direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department
• C) standard prices are more difficult to estimate than standard quantities
• D) standard quantities change more frequently than standard prices

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Definitions:

HR Activities

Actions carried out by the Human Resources department, including recruiting, training, and managing employee relations.

Customer Satisfaction

The measure of how products or services provided by a company meet or surpass customer expectations, often a critical indicator of consumer loyalty and product/service quality.

Improving Service Quality

The process of making enhancements to the aspects of service that customers find valuable and important.

Stakeholder Group

A collection of individuals or organizations that have an interest or concern in the decisions and activities of a business.