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:

Patent

A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention for a limited time period.

Trademark Dilution

A legal concept preventing the use of a famous trademark by others in a way that would lessen its uniqueness, distinctiveness, or value.

Distinctive Quality

A unique characteristic or feature that sets an individual, item, or entity apart from others.

Registered Mark

A trademark that has been officially registered with a recognized government authority.