Which of the following is a possible reason why actual prices might differ from standard prices, resulting in a direct materials price variance?
A) The company may order more materials than it expects to use.
B) The company may receive more materials than ordered.
C) The vendors may change their prices as a result of changes in the market.
D) The company may purchase fewer materials than used.
Correct Answer:
Verified
Q61: Johnston Manufacturing Company purchased 14,000 switches to
Q62: If you know the total dollar amount
Q63: If the actual price of direct material
Q64: If the direct materials purchased costs $200
Q65: Which of the following employees is typically
Q67: Johnston Manufacturing Company purchased 14,000 switches to
Q68: The algebraic equation for the direct materials
Q69: The direct materials quantity variance is part
Q70: Backyard Creations purchased 7,000 feet of copper
Q71: Which of the following is a factor
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents