The variance is solely because of the difference between budgeted quantity and the ___________?
Correct answer: C. actual quantity
- A. flexible hours
- B. actual cost
- C. actual quantity
- D. actual priceCompare Credit Cards
Explanation
A quantity or efficiency variance compares the budgeted quantity with the actual quantity used, while price variances concern differences in rates or prices. Therefore, actual quantity is the required comparison.
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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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