A Favorable Materials Quantity Variance Occurs When the Actual Quantity

question 97

True/False

A favorable materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period.

---

Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Choices

The act of selecting among alternatives or the options available in a decision-making process.

Alternatives

Other options or choices available to decision-makers apart from the one currently under consideration.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change.