Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

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Leyla Avagyan · Accepted Answer

Final Answer : True, Explanation :  Material price variances are commonly isolated or identified at the time materials are purchased so that the variances can be recognized earlier and appropriate actions can be taken. This is because the difference between actual and standard material costs is more evident when the purchase is made, rather than when the materials are placed into production.

Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

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