If Raw Materials Are Carried in the Direct Materials Inventory

Multiple Choice

If raw materials are carried in the Direct Materials Inventory at standard cost,then it is reasonable to assume that the:

A) price variance is recognized when materials are purchased.
B) price variance is recognized when materials are placed into production.
C) company does not follow generally accepted accounting principles.
D) efficiency variance is recognized when the materials are purchaseD.
To be carried at standard,price variations need to be removeD.
Standard cost for materials inventory means standard price × actual quantities in the inventory.