If the Actual Purchase Price for Materials Exceeds the Standard

question 43

True/False

If the actual purchase price for materials exceeds the standard purchase price, then the journal entry to record the Direct Materials Price Variance would be a credit.

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Definitions:

Beneficiary

An individual or entity entitled to receive benefits or assets from a will, trust, insurance policy, or other legal arrangement.

Stale Check

A check that is presented for payment after a certain period (typically six months) from its issue date, leading to its potential refusal by the bank.

Settlement

An agreement reached between parties in a dispute to amicably resolve their differences, often involving a compromise and the cessation of further legal action.

Provisional

Not final.