When Material Price Variances Are Recognised at the Time of Material

question 10

Multiple Choice

When material price variances are recognised at the time of material purchase, direct materials used are

• A) credited to the materials account at standard cost.
• B) debited to the work in process account at actual prices.
• C) credited to the materials account at actual cost.
• D) debited to the materials account at standard cost.

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Definitions:

Price of Water

The cost assigned to water consumption, varying based on location, availability, and delivery methods.

Marginal Utility

The additional benefit or utility gained from consuming an extra unit of a good or service.

Ounce of Gold

A unit of measure for weighing gold, where one ounce is equal to approximately 28.35 grams.

Ounce of Chocolate

A unit of measure representing the weight of chocolate, commonly used in purchasing or consuming chocolate.