The difference between the actual cost incurred and the standard cost is called the:
A) Flexible variance.
B) Price variance.
C) Controllable variance.
D) Cost variance.
E) Volume variance.

Question

Quizplus · Accepted Answer

The difference between actual cost and standard cost is known as the cost variance. The cost variance can be either favorable or unfavorable, depending on whether actual costs are less than or greater than the standard costs. This variance is used to identify inefficiencies and areas where cost savings can be achieved.

The Difference Between the Actual Cost Incurred and the Standard