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:

Equity Stock

Shares of ownership in a corporation, giving shareholders a stake in the company's assets and profits.

Debt Retirement

The process of paying off an outstanding debt over a period, typically through a series of regular payments.

Operating Activity

The day-to-day actions that are involved in running a business and generating income, such as sales, provision of services, and production.

Interest Paid

The total amount paid by a borrower to lenders as a charge for borrowing money, typically expressed as an annual percentage of the loan principal.