Direct Materials Variances Are Called Price and Quantity Variances

question 158

Short Answer

Direct materials variances are called price and quantity variances. However, when referring to direct labor, these variances are usually called ________and ___________variances.

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Definitions:

Potential Risks

Possible threats or dangers that could lead to negative outcomes.

Summarizing Problem

The process of briefly stating the main issues or complexities of a larger problem or situation.

Operating Reports

Detailed documents that provide insights into the day-to-day functions, performance, and efficiency of a business's operations.

Business Plans

Formal documents outlining the goals, strategies, and financial forecasts of a business, intending to guide its direction and growth.