The usage variances focus on the difference between
A) actual quantity used and standard quantity allowed for actual production.

B) actual costs of inputs and standard costs of inputs.
C) actual quantity used and standard quantity allowed for budgeted production.
D) both a and B

Question

The usage variances focus on the difference between
A) actual quantity used and standard quantity allowed for actual production.

B) actual costs of inputs and standard costs of inputs.
C) actual quantity used and standard quantity allowed for budgeted production.
D) both a and B

Quizplus · Accepted Answer

Usage variances measure the difference between the actual quantity of inputs used and the standard quantity allowed for actual production. This variance can occur if the actual quantity used is more or less than the standard quantity allowed. Option B is talking about cost variances which are different from usage variances. Option C is talking about quantity variances which are different from usage variances. Option D is incorrect because only option A is correct.

The Usage Variances Focus on the Difference Between