Which of the following is NOT characteristic of direct materials variances?
A)The sum of the price and usage variances will add up to the total materials variance only if the materials purchased is equal to the materials used.
B)The materials price variance uses the actual quantity of materials purchased rather than the actual quantity of materials used.
C)The materials price variance always uses the actual quantity of materials used rather than the actual quantity of materials purchased.
D)The materials usage variance uses the actual quantity of materials used.

Question

Quizplus · Accepted Answer

The statement in choice C is incorrect. The materials price variance uses the actual quantity of materials purchased, while the materials usage variance uses the actual quantity of materials used. Choices A, B, and D are all true characteristics of direct materials variances.

Which of the Following Is NOT Characteristic of Direct Materials