The direct materials price variance should be calculated:
A) when the materials are purchased.
B) when the materials are requisitioned for use.
C) at the end of the reporting period.
D) when the actual quantity of materials used is known.

Question

Quizplus · Accepted Answer

The direct materials price variance is calculated when the materials are purchased to assess the difference between the actual price paid for materials and the standard cost. This allows a company to monitor and control its material costs effectively.

The Direct Materials Price Variance Should Be Calculated