A variance is:
A)the gap between an actual result and a benchmark amount
B)the required number of inputs for one standard output
C)the difference between an actual result and a budgeted amount
D)the difference between a budgeted amount and a standard amount

Question

Quizplus · Accepted Answer

A variance is the difference between an actual result and a budgeted amount. Therefore, option C is the correct answer. Option A is incorrect because a gap between an actual result and a benchmark amount is not necessarily referred to as a variance, but could be a deviation or discrepancy. Option B is incorrect because it describes the concept of economies of scale which has no relation to variances. Option D is incorrect because it describes the difference between a budgeted amount and a standard amount, not a variance.

A Variance Is