The Direct Materials Price Variance Is Best Measured and Reported

question 79

Multiple Choice

The direct materials price variance is best measured and reported to appropriate management personnel at the time

• A)purchased quantities exceed standard order size.
• B)quarterly financial statements are prepared.
• C)shipments are received and recorded as purchases.
• D)direct materials are issued to production areas.

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Definitions:

Slope

In mathematics and economics, the measure of the steepness or incline of a line, often representing the rate of change.

Y-axis

The Y-axis is the vertical line in a graph or chart, which, in coordinate geometry, usually represents the range of values for a dependent variable.

X-axis

The horizontal line on a graph or chart that usually represents the independent variable in a data set.

Positive Relationship

A relationship between two variables where an increase in one variable is associated with an increase in the other.