What do cost variances measure?
A)the difference between the price the company pays and the price its competitors pay
B)the change in costs over time
C)the difference between actual and standard cost
D)the volume discounts companies receive when ordering materials in large quantities

Question

Quizplus · Accepted Answer

Cost variances measure the difference between actual costs and standard costs, which are predetermined estimates of what costs should be based on factors such as historical data and market trends. This provides insight into how well a company is managing its costs and meeting its budget targets.

What Do Cost Variances Measure