The Direct Materials Price Variance Is (Standard Price/ Divided Units)

question 95

True/False

The direct materials price variance is (standard price/ divided units) times actual unit output.

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Definitions:

Notes Payable

Refers to promissory notes a company issues, promising to pay a specific amount of money at a future date.

Salaries

Regular payments made to employees for their services, often expressed as an annual amount but payable in smaller increments such as monthly or biweekly.

Accounts Payable

Obligations owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Basic Accounting Equation

The fundamental equation representing the relationship between a company's assets, liabilities, and equity; Assets = Liabilities + Equity.