Question: If the total materials variance for a given operation is favocable, why must this variance be further evaluabed as to price and usage? Multiple Cholce
If the total materials variance for a given operation is favocable, why must this variance be further evaluabed as to price and usage?
Multiple Cholce
Generally actepted accounting principles nequive that all variances be analyaed in treet stapes
There is no need to futher evaluate the total materials valance ift is fovorablie.
A further evaluabon lets mavagement evaluabe the activeties of the purchasing and production fanctioss.
Al variances must appear in the arnual repol te equity fewhens for proper discosure.
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