A variance represents the difference between a budgeted and an actual cost.Thus,the variance measures
A)only controllable cost differences.
B)only uncontrollable cost differences.
C)both uncontrollable and controllable cost differences.
D)the effectiveness of management.

Question

Quizplus · Accepted Answer

A variance can arise from both uncontrollable and controllable factors, such as changes in market conditions or inefficiencies in operations. Therefore, the variance measures both uncontrollable and controllable cost differences.

A Variance Represents the Difference Between a Budgeted and an Actual