Multiplying the Difference Between Actual Materials Price Per Unit and the Standard

question 134

Multiple Choice

Multiplying the difference between actual materials price per unit and the standard materials price per unit by actual quantity of materials used is known as the:

• A) Sales volume variance.
• B) Materials price variance.
• C) Labor price variance.
• D) Materials usage variance.

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Definitions:

Meals

Portions of food consumed at specific intervals throughout the day, often comprising of breakfast, lunch, and dinner.

Production Function

A mathematical model that describes the relationship between input resources and output of goods or services in the production process.

Price of Capital

The cost of using capital for production or investment, often represented by interest rates or return on investment.

Manufacturing Plant

A large industrial building designed for the production of goods, using various processes and machinery, in a structured and efficient manner.