alleryStart learning →How many components are there to a direct materials variance?
ATwo components
BOne component
CFour components
DSix components
Answer & Solution
Correct answer: A. Two components
1. The materials variance is decomposed.
2. Direct materials may vary in price or in quantity used.
3. There are two components to a direct materials variance.
4. They are the price variance and the quantity variance.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 8 'Standard Costs and Variances'_
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