How Is the Direct Materials Price Variance Calculated

question 108

Multiple Choice

How is the direct materials price variance calculated?

• A) The difference in quantities multiplied by the actual price of the input
• B) The difference in prices multiplied by the actual quantity of the input
• C) The actual amount of direct materials purchased divided by the actual quantity
• D) The actual quantity of direct materials purchased divided by the per unit price

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Definitions:

Great Recession

A severe global economic downturn that began in 2007 and lasted until 2009, marked by significant declines in financial markets and economic activity worldwide.

Fiscal Policy Measures

Government actions involving taxation and spending to influence the economy.

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A situation where a government's expenditures surpass its revenues within a specific time period, leading to borrowing or debt accumulation.

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Government strategies involving adjustments in spending levels and tax rates to influence the overall economy, aimed at stabilizing seasonal or cyclical fluctuations.