The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the:
A) Controllable variance.
B) Standard variance.
C) Budget variance.
D) Quantity variance.
E) Price variance.

Question

Quizplus · Accepted Answer

The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the Quantity Variance. This variance arises due to the difference between the actual quantity of inputs used and the standard quantity of inputs allowed for the goods produced.

The Difference Between Actual and Standard Cost Caused by the Difference