The difference between actual input variance and the budgeted input variance is called __________?
Correct answer: A. price variance
- A. price variance
- B. actual output price
- C. budgeted output price
- D. actual selling priceHire An Accountant
Explanation
Price variance measures the difference between the actual input price and the budgeted or standard input price, usually multiplied by the quantity purchased or used. The other options refer to output or selling-price measures rather than input price variance.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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