The _______________ is the standard plus the allowable deviation.
A) upper control limit
B) standard price
C) standard quantity
D) total budget variance

Question

Quizplus · Accepted Answer

The upper control limit is the maximum allowable deviation from the standard. This is used in statistical process control to monitor and adjust for variations in production processes. The standard price is the expected or budgeted price of a product or service. The standard quantity is the expected or budgeted amount of a product or service to be produced or consumed. The total budget variance is the difference between the actual and budgeted costs of a project or operation. None of these options fit the definition of the standard plus allowable deviation.

The _______________ Is the Standard Plus the Allowable Deviation