Variances represent the differences between:
A)Actual costs and the standard costs applied
B)Raw materials ordered and raw materials received
C)The sales targets and sales accomplishments
D)Actual quantity on hand and quantity according to the inventory system

Question

Quizplus · Accepted Answer

Variances represent the differences between actual costs and the standard costs applied. This helps in identifying areas where costs may be higher than expected and taking corrective action. Raw material variances represent differences between raw materials ordered and received, sales variances represent differences between sales targets and accomplishments, and inventory variances represent differences between actual quantity on hand and quantity according to the inventory system.

Variances Represent the Differences Between