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:

Kernel of Truth Hypothesis

The notion that stereotypes, while significantly exaggerated, may originate from some element of actual experience or reality.

Stereotypes

Simplified and generalized beliefs or notions held about individuals or groups, often leading to prejudgments without factual basis.

Institutional Discrimination

Systemic policies or practices within organizations or societies that disadvantage certain groups.

Stereotype Threat

The feeling of worry or nervousness in circumstances where an individual might inadvertently validate a negative cliché associated with their societal group.