keepcalmands9609 keepcalmands9609
  • 11-08-2020
  • Business
contestada

When the materials price variance is recorded at the time of purchase, raw materials are recorded as inventory at standard cost.
a) true
b) false

Respuesta :

andromache andromache
  • 13-08-2020

Answer:

a)True

Explanation:

The formula to compute the material price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

Here the raw material of the inventory should be recorded at the standard price and the difference of standard pice & actual price shows the favorable and unfavorable variance

Therefore the given statement is true

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