Asked by Brianna Sparks on May 22, 2024
Verified
The materials price variance is computed based on the amount of materials purchased during the period.
Materials Price Variance
This measures the difference between the actual cost of materials used in production and the standard cost expected for those materials, indicating how efficiently an organization is purchasing materials.
- Investigate the efficacy of quantity and price guidelines in managing expenses for materials and labor.
Verified Answer
CO
Clara OwensMay 25, 2024
Final Answer :
True
Explanation :
The materials price variance is calculated based on the difference between the actual price paid for materials and the standard price expected to be paid for the amount of materials purchased during the period.
Learning Objectives
- Investigate the efficacy of quantity and price guidelines in managing expenses for materials and labor.