An unfavorable materials price variance is recorded as a debit in the Materials Price Variance account.

Name: An unfavorable materials price variance is recorded as a debit in the Materials Price Variance account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An unfavorable materials price variance means that the actual price paid for materials is higher than the standard price. This results in higher costs than expected, which is recorded as a debit in the Materials Price Variance account. Therefore, the statement is true.

An Unfavorable Materials Price Variance Is Recorded as a Debit