When computing standard cost variances,the difference between actual and standard price multiplied by actual quantity yields a(n): (CMA adapted)
A) combined price and quantity variance.
B) efficiency variance.
C) price variance.
D) quantity variance.

Question

Quizplus · Accepted Answer

The formula described in the question is used to calculate the price variance, which measures the difference between the actual price paid for a material or input and the standard price that was expected. The price variance is important for understanding the impact of changes in input costs on a company's bottom line.

When Computing Standard Cost Variances,the Difference Between Actual and Standard