When computing variances from standard costs,the difference between actual and standard price multiplied by actual quantity used yields a
A)combined price-quantity variance.
B)price variance.
C)quantity variance.
D)mix variance.

Question

Quizplus · Accepted Answer

The difference between the actual and standard price, multiplied by the actual quantity used, results in a price variance. This calculation isolates the impact of the price difference from the quantity or volume effect.

When Computing Variances from Standard Costs,the Difference Between Actual and Standard