Asked by
jocelyne hernandez
on Dec 16, 2024
Verified
When is a variance considered to be 'material'?
A) When it is large compared to the actual cost
B) When it is infrequent
C) When it is unfavorable
D) When it could have been controlled more effectively
Material Variance
Material variance is the difference between the actual cost of materials used in the production process and the expected (or standard) cost, used to analyze and control costs in manufacturing.
- Identify when a variance is considered material and the impact on cost control.
Verified Answer
CW
Learning Objectives
- Identify when a variance is considered material and the impact on cost control.