Share
A Favorable Direct Materials Quantity Variance Indicates Which Of The Following?
Question
Also See:
- Order Quantity Exceeds Total Portfolio Quantity In Angel Broking Meaning
- Direct Materials Are Not Usually Easily Traced To A Product.
- A Multidomestic Marketing Strategy Indicates That A Firm:
- Physical Quantity Having A Definite Direction But Zero Magnitude Is
- A Dimensionless Physical Quantity But Having Unit In Si System.
- New Technologies Do Not Lead To Economies In The Use Of Raw Materials
- A Company Uses Direct Labor Hours As Its Allocation Base
- WHICH OF THE FOLLOWING IS THE REAL LIFE ENTITY
- Which Of The Following Is Not A Pair Of Parent And Child Who Have Both Won Nobel Prize
- During Purchasing Automobiles Following Specifications Are Considered
- Which Of The Following Financial Statement Is Generally Prepared First
- Which Source Of Water From The Following Requires Less Treatment
- Which Of The Following Is A Characteristic Of Aromatic Compounds
in progress
0
1 Answer
Answer ( 1 )
A Favorable Direct Materials Quantity Variance Indicates Which Of The Following?
Manufacturing is a complex process, and no two companies will have the same requirements for direct materials. When you’re running a manufacturing operation, it’s important to be able to forecast your needs so you can make sure you have the right amount of material on hand at all times. A favorable direct materials quantity variance indicates that you have more material on hand than you need, which is a good thing. Here are four more reasons why having a favorable direct materials quantity variance is beneficial: 1. You can save money by not having to purchase additional material. 2. You can avoid waste by using excess material in other areas of the manufacturing process. 3. You can optimize your production processes by using the right type of material at the right time. 4. You can reduce inventory costs by using excess material as fuel for the production line.
A material has been oversupplied
A material has been oversupplied. A favorable direct materials quantity variance indicates which of the following?
When there is a favorable direct materials quantity variance, it often means that the company is producing too much of a certain product. This could be due to either overproduction or underproduction. Overproduction can sometimes be caused by factors such as inadequate planning or manufacturing processes, while underproduction may be the result of insufficient demand for a product. In either case, excessive production can lead to an oversupply of goods on the market and drive down prices.
A material has been undersupplied
A material has been undersupplied. A favorable direct materials quantity variance indicates that the company is producing more product than expected and therefore does not need to purchase as many raw materials.
There is no significant change in the material’s direct materials quantity variance
A favorable direct materials quantity variance indicates that the manufacturing process is producing more product than is being ordered. This may be due to a shift in customer demand or due to increased efficiency within the manufacturing plant.
The material’s direct materials quantity variance is increasing
A favorable direct materials quantity variance indicates that the manufacturing process is running smoothly and that there is no need to increase the inventory of raw materials. This could mean that the company can produce more products without costing too much money, or that they are able to save on their raw material costs by making minor adjustments to their manufacturing processes.
The material’s direct materials quantity variance is decreasing
A favorable direct materials quantity variance indicates that the company’s manufacturing process is working correctly. This means that the materials being used to produce the product are of high quality and meeting the required specifications. Additionally, this indicates that there is no need for additional material purchases or adjustments to production processes.