An Debit Balance in the Direct Material Price Variance Account

question 92

Multiple Choice

An debit balance in the direct material price variance account or direct labour price variance accounts would cause the costs of goods sold to

• A) increase.
• B) decrease.
• C) stay the same.
• D) have no impact.

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Definitions:

Economic Activity

All actions that involve producing, trading, selling, and buying goods and services within an economy.

Final Good

A product that is consumed directly by the end-user or customer and will not be used to produce any further goods or services.

Laundry Services

Services provided by businesses to clean clothing and textiles for individuals or commercial customers.

Gross Domestic Product

A measure of the economic performance of a country, reflecting the market value of all final goods and services produced within a country's borders in a given period.