An unfavorable materials quantity variance is recorded as a credit in the Materials Quantity Variance account.

Name: An unfavorable materials quantity variance is recorded as a credit in the Materials Quantity Variance account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An unfavorable materials quantity variance is caused by using more materials than expected, which leads to higher costs than budgeted. Therefore, it is recorded as a debit in the Materials Quantity Variance account, not a credit.

An Unfavorable Materials Quantity Variance Is Recorded as a Credit