If the Actual Quantity of Direct Materials Used in Producing

question 86

Multiple Choice

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity,the variance is termed:

• A)controllable variance.
• B)price variance.
• C)quantity variance.
• D)rate variance.

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Definitions:

Statistical Experiments

Designed investigations that manipulate variables to observe effects and establish cause-and-effect relationships in data.

Outcome

The result or consequence of an experiment, action, or occurrence.

Prior Probabilities

Initial estimates of the probabilities of events.

Probabilities

The assessment of the probability that a particular event will take place.