A material price variance measures whether more or less material was used in producing inventory.

Name: A material price variance measures whether more or less material was used in producing inventory.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A material price variance measures the difference between the actual cost of materials used in production and the expected cost of materials based on the standard cost system. It does not measure the amount of material used, which would fall under the material quantity variance.

A Material Price Variance Measures Whether More or Less Material