A mix variance is
A) created whenever the actual mix of inputs differs from the standard mix.
B) the difference in the standard cost of the actual mix of inputs used and the standard cost of the mix of inputs that should have been used.
C) both 'a' and 'b' are correct.
D) none of these are correct.

Question

Quizplus · Accepted Answer

A mix variance occurs when the actual mix of inputs differs from the standard mix, and it is measured as the difference between the standard cost of the actual mix of inputs used and the standard cost of the mix of inputs that should have been used. Therefore, both statement 'a' and 'b' are correct.

A Mix Variance Is