A Company That Records the Direct Materials Price Variance at the Time

question 36

Multiple Choice

A company that records the direct materials price variance at the time of purchase will record the use of direct materials (measured in kilograms) in the production process by crediting raw materials inventory for which of the following?

• A) Standard quantity of direct materials used for actual production times actual cost per kilogram
• B) Standard quantity of direct materials used for actual production times standard cost per kilogram
• C) Actual quantity of direct materials put into production times standard cost per kilogram
• D) Actual quantity of direct materials put into production times actual cost per kilogram

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Definitions:

Task Force

A temporary group of people formed to carry out a specific mission or project, often multidisciplinary.

Mental Lock

A psychological barrier that prevents an individual from seeing or exploring solutions outside of their usual thought patterns.

Creativity

The ability to produce original ideas or solve problems in novel and effective ways.

Avoiding Ambiguity

The practice of making information clear and understandable to eliminate confusion and uncertainty.