A Favorable Materials Quantity Variance Would Occur If

question 45

Multiple Choice

A favorable materials quantity variance would occur if:

• A) more material is purchased than is used.
• B) actual pounds of materials used were less than the standard pounds allowed.
• C) actual labor hours used was greater than the standard labor hours allowed.
• D)actual pounds of materials used was greater than the standard pounds allowed.

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Definitions:

Short Run

A time period in which at least one factor of production is fixed, limiting the ability of a business to adjust fully to market changes.

Skilled Labor

Workers who possess specialized skills, training, and education that are required to perform complex tasks.

Unskilled Labor

Refers to workers who lack specialized training or qualifications, often performing manual or routine tasks.

Marginal Product

The additional output resulting from a one-unit increase in the use of a variable input, while holding all other inputs constant.