Accounting · Variance Analysis
Which of the following statements regarding direct material cost variances is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1An adverse direc t material cost variance can be a combination of a favourable material price variance and an adverse material usage varian ce.✓
- 2An adverse direct material cost variance can be a combination of a favourable material price variance and a favourable material usage variance.
- 3An adverse direct material cost variance will always be a combination of an adverse material price variance and a favo urable material usage variance.
- 4An adverse direct material cost variance will always be a combination of an adverse material price variance and an adverse material usage variance.
Correct answer
An adverse direc t material cost variance can be a combination of a favourable material price variance and an adverse material usage varian ce.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Variance Analysis MCQs →Want more practice questions on Variance Analysis?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Variance Analysis