Variances are computed by taking the difference between which of the following?
A) Product cost and period cost.
B) Actual cost and differential cost.
C) Price factors and rate factors.
D) Actual cost and standard cost.
E) Product cost and standard cost.

Question

Quizplus · Accepted Answer

Variances are computed by taking the difference between the actual cost incurred and the standard cost that was expected or budgeted. This helps in analyzing the performance and identifying areas where the actual performance deviated from the planned performance.

Variances Are Computed by Taking the Difference Between Which of the Following