The ________ "measures whether the quantity of direct materials used to make the actual number of outputs is within the standard allowed for that number of outputs."

Question

Quizplus · Accepted Answer

The quantity variance measures whether the actual quantity of direct materials used to produce the actual number of outputs is within the standard allowed for that number of outputs. The production volume variance measures the impact of a difference between actual output and budgeted output on fixed costs, while the overhead flexible budget variance measures the difference between actual and budgeted overhead costs based on actual output. The price variance measures the difference between the actual cost of direct materials and the budgeted cost of direct materials.

The ________ "Measures Whether the Quantity of Direct Materials Used