From the perspective of control, the direct materials efficiency variance should be isolated at the time of:
A)purchase
B)use
C)completion of the entire product
D)sale of the product

Question

Quizplus · Accepted Answer

The direct materials efficiency variance is the difference between the actual quantity of materials used and the standard quantity of materials that should have been used in the production process. This variance can only be isolated at the time of use because it compares the actual quantity of materials used to the standard quantity of materials that should have been used. Therefore, the best choice is B.

From the Perspective of Control, the Direct Materials Efficiency Variance