If the Actual Quantity of Direct Materials Used Equals the Budgeted

question 37

Multiple Choice

If the actual quantity of direct materials used equals the budgeted quantity of direct materials that should have been used,any difference between the budgeted total cost and the actual total cost of direct materials used must be due to a:

• A)Materials quantity variance
• B)Materials efficiency variance
• C)Overhead variance
• D)Materials price variance

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Definitions:

Diminishing Returns

Diminishing returns is an economic principle stating that as one factor of production increases while others are held constant, the additional output (returns) from the increased factor will eventually decrease.

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Benefiting from a service or good without having to bear the cost or effort of obtaining it, usually in the context of public goods.

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The unauthorized distribution of digital content, such as music, movies, or software, over the internet.

Digital Piracy

Digital piracy is the illegal copying, distribution, or use of digital media, such as software, music, movies, and video games, without authorization or payment to the copyright holder.