For a direct material, which one of the following is defined as the difference between the actual and standard unit price of the direct material multiplied by the actual quantity of the material purchased?
A) Direct materials purchase-price variance.
B) Direct materials volume variance.
C) Direct materials usage variance.
D) Direct materials flexible-budget variance.
E) Direct materials purchase-mix variance.

Question

Quizplus · Accepted Answer

The Direct materials purchase-price variance measures the difference between the actual price paid for direct materials and the standard price that should have been paid, multiplied by the actual quantity purchased.

For a Direct Material, Which One of the Following Is