In standard costing the price and efficiency variances account for the differences between actual and standard costs in the ledger accounts.

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In standard costing, price (or rate) variances account for the differences in the actual versus standard cost due to the price of inputs, and efficiency variances account for differences due to the quantity of inputs used. These variances help in analyzing the reasons behind deviations from standard costs in the ledger accounts.

In Standard Costing the Price and Efficiency Variances Account for the Differences