A Favorable Materials Quantity Variance Would Appear as a Credit

question 54

True/False

A favorable materials quantity variance would appear as a credit in a journal entry.

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Definitions:

EPS

Earnings Per Share; a company's profit divided by its number of common outstanding shares, indicating the company’s profitability.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamentals and independent of market price.

P/E Multiple

The price-to-earnings ratio, a valuation measure comparing the current price of a stock to its per-share earnings.

EPS

Earnings Per Share - a financial metric calculating the portion of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.