For better control of direct material prices, when should direct material price variance be recognized?
A)when material is purchased
B)when material is issued from the storeroom
C)when material is put into production
D)when production is completed

Question

Quizplus · Accepted Answer

Direct material price variance should be recognized when material is purchased because it allows for timely identification of any deviations from the expected material price, allowing the company to take corrective actions to manage costs. Waiting until the material is issued, put into production or completed could result in delayed or missed opportunities to manage price variances.

For Better Control of Direct Material Prices, When Should Direct