[Anonymous]

If a company buys equipment that will reduce the amount of direct materials needed to produce the same amount under the old equipment you would use a Direct Materials usage variance to analyze and it would be favorable correct?

Or say your supplier raises the price of your direct materials then you would use the Direct Materials Price Variance to measure the effect and it would be unfavorable correct?

[Anonymous]

Bumping back to the front page.

[Author]

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