Economics · Standard Costing and Variance Analysis
Which statement accurately describes the Material Price Variance when inventory is accounted for at standard cost?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The variance is calculated only at the point materials are issued to production.
- 2The variance is calculated on the standard quantity allowed for actual production.
- 3The variance is calculated on total material purchases regardless of the amount issued to production.✓
- 4The variance is calculated on material usage multiplied by the price difference.
Correct answer
The variance is calculated on total material purchases regardless of the amount issued to production.
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 Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Standard Costing and Variance Analysis MCQs →Want more practice questions on Standard Costing and Variance Analysis?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Standard Costing and Variance Analysis