Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
minaebied minaebied
wrote...
Go to Answer
Posts: 145
Rep: 0 0
A year ago
Why is the direct materials price variance based on the quantity of materials purchased, but the direct materials quantity variance on the quantity of materials used?

▸ Production managers are only interested in the quantity purchased.

▸ Managers need to isolate variances and take corrective action as soon as possible.

▸ Managers are required by GAAP to isolate the price variance at the latest point possible.

▸ The quantity used in production is not known until units are produced.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 51 times
1 Reply
Replies
Answer verified by a subject expert
mkql12mkql12
wrote...
#1
Posts: 143
Rep: 1 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

minaebied Author
wrote...

A year ago
Thanks
54321abs
wrote...

Yesterday
Smart ... Thanks!
fgarza2146
wrote...

2 hours ago
This helped my grade so much Perfect
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1296 People Browsing
 124 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 314
  
 443
  
 300
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 431
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?