A price variance reflects the difference between ________.
A) a standard input price in a company and its competitor
B) an actual input price used last period and current period
C) an actual input price used in a company and its competitor
D) an actual input price and a budgeted input price

Question

Quizplus · Accepted Answer

A price variance reflects the difference between an actual input price and a budgeted input price. Therefore, option D is the correct choice. Option A is incorrect as it compares the standard input price of one company with its competitor. Option B is incorrect as it compares the actual input price of two different periods. Option C is incorrect as it compares the actual input price used in one company with its competitor.

A Price Variance Reflects the Difference Between ________