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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
An efficiency variance is 200 units and the actual input quantity is 500 units, then the budgeted input quantity will be __________?
The budget which is planned around a single output level is called _________?
The actual price of material is less than budgeted price, this means that _________?
A costing system, which focuses on individual activities as the particular cost object is classified as __________?
The variance is the stated difference between expected performance and the ___________?
The quantity of input which is carefully determined is called ___________?