If Raw Materials Are Carried in the Direct Materials Inventory

question 54

Multiple Choice

If raw materials are carried in the Direct Materials Inventory at standard cost,then it is reasonable to assume that the:

• A)price variance is recognized when materials are purchased.
• B)price variance is recognized when materials are placed into production.
• C)company does not follow generally accepted accounting principles.
• D)efficiency variance is recognized when the materials are purchaseD.

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Definitions:

Physical Distractions

External factors in the environment that can disrupt concentration and focus, such as noise, clutter, or movement.

Feedback

Information provided about the result of a process or activity, used as a basis for improvement.

Poor Choice

A decision that is considered suboptimal or damaging in hindsight or from another's perspective.

Oral Presentation

The process of communicating information or ideas to an audience through spoken word, often accompanied by visual aids.