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

Question

Quizplus · Accepted Answer

The difference between actual and standard price multiplied by actual quantity yields the price or rate variance, which measures the difference between what was paid for the input and what should have been paid based on the standard cost. This variance reflects changes in the input prices or rates.

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