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What Does a Favourable Direct Materials Price Variance Indicate

Question 119

Multiple Choice

What does a favourable direct materials price variance indicate?


A) The actual cost of materials purchased was greater than the standard cost of materials purchased.
B) The standard cost of materials purchased was less than the actual cost of materials purchased.
C) The standard cost of materials purchased was greater than the actual cost of materials purchased.
D) The actual quantity of materials used was less than the standard quantity of materials used for actual production.

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