Asked by Melissa Quintanilla on Jun 20, 2024
Verified
If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.
A) controllable
B) price
C) quantity
D) rate
Quantity Variance
The difference between the actual quantity of materials or labor used in a process and the expected amount, which affects overall production costs.
Direct Materials
Raw materials that are directly traceable to the production of a specific good or service and are a significant portion of the production cost.
Standard Quantity
The expected amount of materials or inputs required to produce a unit of product under normal operating conditions.
- Identify and assess variances of direct materials concerning price and quantity distinctions.
Verified Answer
Learning Objectives
- Identify and assess variances of direct materials concerning price and quantity distinctions.
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