828 If the material quantity standard specifies exactly how

8-28 If the material quantity standard specifies exactly how much material should be in the final product, a favorable materials quantity variance is a good thing. A. True B. False

Solution

The statement is correct.

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Direct material quantity variance is ascertained to decide the productivity of creation division in changing over crude material to completed merchandise. With a specific end goal to enhance effectiveness, wastage of crude material must be decreased. A negative estimation of direct material quantity variance is ominous and it suggests that greater quantity of direct material has been utilized as a part of the creation procedure than really required. A positive estimation of direct material quantity variance is great inferring that crude material was productively changed over to completed merchandise.

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