The direct materials price variance is best measured and reported to appropriate management personnel at the time
A)purchased quantities exceed standard order size.
B)quarterly financial statements are prepared.
C)shipments are received and recorded as purchases.
D)direct materials are issued to production areas.

Question

Quizplus · Accepted Answer

The direct materials price variance is most accurately measured at the time shipments are received and recorded as purchases. This allows management to immediately see the difference between the actual cost of materials and the expected (standard) cost, facilitating timely decisions.

The Direct Materials Price Variance Is Best Measured and Reported