The Initials GAAP Stand for

question 34

Multiple Choice

The initials GAAP stand for

• A) General Accounting Procedures
• B) Generally Accepted Plans
• C) Generally Accepted Accounting Principles
• D) Generally Accepted Accounting Practices

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Definitions:

Standard Materials Price

The predetermined cost per unit of material that is used for budgeting and cost control purposes in manufacturing.

Direct Materials

Raw materials that are directly incorporated into a finished product and are a significant part of the manufacturing process.

Standard Materials Price

The price set for budgeting purposes for materials in manufacturing, often used in variance analysis.

Standard Materials Price

The pre-determined cost assigned to materials used in production, for budgeting and variance analysis purposes.