alleryStart learning →The two components of a direct materials variance are the price variance and the:
ATiming variance
BQuantity variance
CRate variance
DVolume variance
Answer & Solution
Correct answer: B. Quantity variance
1. The two components are named directly.
2. A direct materials variance has two components.
3. They are the direct materials price variance and the direct materials quantity variance.
4. Both compare the actual price or amount used to the standard amount.
_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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