If the Actual Quantity of Materials Used Is Less Than

question 34

True/False

If the actual quantity of materials used is less than the standard quantity of materials allowed for the actual output,then the journal entry to record the Direct Materials Quantity Variance would be a credit.

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Definitions:

Missing Amounts

Figures or data that are not included in financial statements or records, requiring adjustments or calculations to determine.

Income Statement

A financial statement showing a company's revenue, expenses, and profit or loss over a specific period, often quarterly or annually.

Inventory Unit Costs

The costs associated with obtaining or producing a single unit of inventory, encompassing material, labor, and overhead.

Average Cost Method

An inventory valuation method that assigns the average cost of all similar items in the inventory until they are sold.