The flexible-budget variance for direct-cost inputs is subdivided into two detailed variances, the efficiency variance and the price variance.

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The flexible-budget variance for direct-cost inputs can be subdivided into the efficiency and price variances. The efficiency variance measures the difference between the actual and budgeted quantities of inputs used, while the price variance measures the difference between the actual and budgeted prices paid for those inputs.

The Flexible-Budget Variance for Direct-Cost Inputs Is Subdivided into Two