Asked by Amirul Hasan on May 18, 2024
Verified
If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a
A) controllable variance
B) price variance
C) quantity variance
D) rate variance
Quantity Variance
The difference between the actual quantity of material used in production and the standard quantity expected to be used.
Direct Materials
Raw materials that can be directly associated with the production of a product and are an integral part of the finished product.
Actual Quantity
The real amount of goods or materials used in production, as opposed to the estimated or budgeted amount.
- Quantify and interpret the divergences in the cost and amount of direct materials.
Verified Answer
Learning Objectives
- Quantify and interpret the divergences in the cost and amount of direct materials.
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