When the Quantity of Materials Purchased and Materials Used Is

question 51

Multiple Choice

When the quantity of materials purchased and materials used is different, which of the following is more relevant for the purpose of calculating the direct materials price variance?

• A) Standard quantity allowed
• B) Actual quantity purchased
• C) Actual quantity used
• D) The lower of the standard quantity allowed and the actual quantity purchased

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Definitions:

Accounts

Recordings within an accounting system that track financial transactions and their effects on specific assets, liabilities, equity, revenues, and expenses.

Balances

Refers to the amount of money in a financial account, the difference between debit and credit totals in an account, or the amount remaining unpaid on a debt.

Business Enterprises

Organizational entities engaged in commercial, industrial, or professional activities, aiming to generate profits from their operations.

Accountants

Experts who conduct financial analyses or audits in adherence to established procedures.