Which of the following is true of mix variance?
A)A mix variance is created whenever actual mix of inputs differs from standard mix.
B)A mix variance is created whenever actual mix of inputs differs from standard output.
C)A mix variance is the difference in standard and actual costs of the actual mix of inputs used.
D)A mix variance is the difference between the actual amount of each input and its standard mix amount.

Question

Quizplus · Accepted Answer

Mix variance is the difference between the actual mix and the standard mix of inputs used. Therefore, option A is correct. Option B is incorrect because mix variance is not related to output but to input mix. Option C is incorrect because it only refers to the cost aspect of mix variance and not the mix aspect. Option D is incorrect because it only refers to the amount of input and not the mix aspect.

Which of the Following Is True of Mix Variance