A spending variance is made up of:
A)volume variance and quantity variance.
B)price variance and volume variance.
C)price variance and quantity variance.
D)price variance and rate variance.

Question

Quizplus · Accepted Answer

A spending variance is the difference between the actual spending and the expected spending. It is made up of two components: price variance and quantity variance. The price variance is the difference between the actual cost of a unit and the expected cost of a unit, while the quantity variance is the difference between the actual quantity of units and the expected quantity of units. Therefore, option C (price variance and quantity variance) is the correct answer.

A Spending Variance Is Made Up Of