The input quantity variance is also referred to as the input efficiency variance because it captures the efficiency of input resource use.

Question

Quizplus · Accepted Answer

The statement is correct. The input quantity variance measures the difference between actual inputs used and the expected inputs under a certain level of production. It reflects the efficiency of using input resources. Therefore, it is also referred to as the input efficiency variance.

The Input Quantity Variance Is Also Referred to as the Input