An unfavorable spending variance may reflect waste as well as paying too much for inputs.

Name: An unfavorable spending variance may reflect waste as well as paying too much for inputs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An unfavorable spending variance indicates a higher actual cost of inputs compared to the budgeted cost. This could be due to paying too much for inputs or due to wastage during the production process. Therefore, the statement is true.

An Unfavorable Spending Variance May Reflect Waste as Well as Paying