Rate variances are the same as ________ variances.Efficiency variances are the same as ________ variances.
A) spending; effective
B) activity; static
C) usage; quantity
D) price; quantity

Question

Quizplus · Accepted Answer

Rate variances refer to the difference between the actual and budgeted price of a unit, while price variances refer to the difference between the actual and budgeted price of a total quantity of inputs. Efficiency variances refer to the difference between the actual and budgeted efficiency of converting inputs into outputs, while quantity variances refer to the difference between the actual and budgeted quantity of inputs or outputs used. Therefore, rate variances are the same as price variances, and efficiency variances are the same as quantity variances.

Rate Variances Are the Same as ________ Variances