Bordes Corporation Has Provided the Following Data Concerning Its Most

question 52

Multiple Choice

Bordes Corporation has provided the following data concerning its most important raw material, compound R85F: The raw material was purchased on account.
-The Materials Price Variance for May would be recorded as a:

• A)Credit of $2,056
• B)Debit of $2,640
• C)Debit of $2,056
• D)Credit of $2,640

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Definitions:

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Differential Analysis

The area of accounting concerned with the effect of alternative courses of action on revenues and costs.

Unprofitable Segment

A division or business unit within a company that does not generate profits and may incur losses.

Plant Assets

Long-term tangible assets that are used in the operations of a business and are not intended for resale, such as machinery, buildings, and land.