Examlex
After reading a case study like that of Jane Addams, we must remember that
Direct Materials Quantity Variance
This measures the difference between the actual quantity of materials used in production and the standard amount expected to be used.
Standard Costs
Pre-determined or estimated costs for products or services used for budgeting and performance evaluation purposes.
Actual Costs
The genuine costs incurred in the production or acquisition of goods and services.
Direct Materials Price Variance
The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.
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