The Direct Materials Cost and Efficiency Variances Make Up the Total

question 152

True/False

The direct materials cost and efficiency variances make up the total direct materials variance.

---

Definitions:

Market Price

The present value at which a service or asset is available for purchase or sale in the marketplace.

Par Value

The face value of a bond or stock as stated by the issuing company, unrelated to its market value. It's a nominal value used for accounting purposes.

Anticipated Future Earnings

Projected profits or income that a company expects to earn in future periods, often used in valuations.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders a share in the company's profits and voting rights.