Managers generally have more control over efficiency variances than price variances.

Question

Quizplus · Accepted Answer

Efficiency variances are related to the performance and productivity of the organization, which are generally under the control of the management. On the other hand, price variances are related to market fluctuations and external factors which are not solely controlled by the management. Therefore, managers have more control over efficiency variances than price variances.

Managers Generally Have More Control Over Efficiency Variances Than Price