A total materials variance is analyzed in terms of
A) price and quantity variances.
B) buy and sell variances.
C) quantity and quality variances.
D) tight and loose variances.

Question

Quizplus · Accepted Answer

A total materials variance is typically analyzed in terms of price and quantity variances. The price variance relates to the difference between the actual cost of materials purchased and the standard cost of materials, while the quantity variance relates to the difference between the actual quantity of materials used and the standard quantity of materials. Together, these variances can give insight into the efficiency and effectiveness of a company's materials management.

A Total Materials Variance Is Analyzed in Terms of