Which of the Following Journal Entries Correctly Represents the Recording

question 21

Multiple Choice

Which of the following journal entries correctly represents the recording of an unfavourable material price variance?

• A) Direct material debit, materials price variance and accounts payable credit.
• B) Direct material and materials price variance debit, accounts payable credit.
• C) Direct material debit, work in process and accounts payable credit.
• D) Direct materials debit, accounts payable credit.

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Definitions:

Tax Reduction

The act of decreasing the rates or amounts of taxes imposed by a government, often with the aim of stimulating economic growth or providing relief to taxpayers.

Income of Consumers

The total earnings received by individuals and households from various sources including wages, salaries, benefits, and investment income.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the price where supply and demand are balanced.

Alfred Marshall

A British economist known for his work on microeconomics and for developing the concepts of supply and demand elasticity.