What Is the Result When the Quantity of Materials Used

question 135

Multiple Choice

What is the result when the quantity of materials used is less than the standard quantity?

• A) A favorable materials usage variance
• B) A favorable materials price variance
• C) An unfavorable materials usage variance
• D) An unfavorable materials price variance

---

Definitions:

Verifiability

Verifiability in accounting means information in financial statements can be confirmed or corroborated by independent parties using the source documents.

Comparable

This term often refers to financial metrics or properties that are similar enough to be used for comparison purposes in analyses.

Financial Reporting

The process of disclosing financial performance and position of a company through financial statements issued periodically.

Economic Substance

A principle that transactions should reflect their true economic purpose, not just their legal form.