The Following Data Relate to Direct Materials Costs for November

question 129

Multiple Choice

The following data relate to direct materials costs for November: What is the direct materials quantity variance?

• A) $3,600 favorable
• B) $1,240 favorable
• C) $3,600 unfavorable
• D) $1,240 unfavorable

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds; interest payments made on any form of debt over a given period.

Effective Interest Method

An accounting practice used to allocate loan discounts or premiums over the life of the loan, reflecting the financial interest rate more accurately.

Discount Amortization

The process of gradually reducing the discount on bonds payable or notes payable over the life of the debt.

Theoretical Justification

The process of providing logical reasoning and evidence to support a theory or proposition.