The direct materials price variance is based on the amount of materials
A)purchased.
B)on hand.
C)used.
D)budgeted.

Question

Quizplus · Accepted Answer

The direct materials price variance is based on the amount of materials purchased, which is then compared to the expected or budgeted price. This variance helps to assess the effectiveness of the purchasing department in getting the best prices for raw materials. The amount of materials on hand or materials used are not directly related to the direct materials price variance.

The Direct Materials Price Variance Is Based on the Amount