A total variance is best defined as the difference between total
A)actual cost and total cost applied for the standard output of the period.
B)standard cost and total cost applied to production.
C)actual cost and total standard cost of the actual input of the period.
D)actual cost and total cost applied for the actual output of the perioD.

Question

Quizplus · Accepted Answer

A total variance is the difference between the actual cost and the total cost applied for the actual output of the period. This variance helps in determining the efficiency of the production process and identifying areas where improvements can be made. Option A is incorrect because it describes a cost variance. Option B is incorrect because it describes a cost control variance. Option C is incorrect because it describes a cost expenditure variance.

A Total Variance Is Best Defined as the Difference Between