What Does a Favourable Direct Materials Price Variance Indicate

question 257

Multiple Choice

What does a favourable direct materials price variance indicate?

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

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HRM Association

An organization or group that focuses on the professional practices and development of human resource management, providing resources, advocacy, and networking opportunities for HR professionals.

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These are services dedicated to providing educational resources and information to individuals or communities, often focusing on learning support, research, and access to educational materials.

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Internal Management

The process of overseeing and guiding a company's operations, strategies, and employees from within the organization.