A favorable materials price variance will occur when:
A)Actual costs of materials were less than budgeted
B)More material was used than was budgeted
C)Actual cost of materials were greater than budgeted
D)Less material was used than was budgeted

Question

Quizplus · Accepted Answer

A favorable materials price variance occurs when the actual cost of materials is less than the budgeted cost of materials. This means that the company saved money on the materials they purchased.

A Favorable Materials Price Variance Will Occur When