The difference between the split cost and the actual cost for direct materials is called the:
A) Materials Efficiency Variance
B) Materials Usage Variance
C) Materials Budget Variance
D) Materials Price Variance
E) None of the above

Question

Quizplus · Accepted Answer

The difference between the split cost and the actual cost for direct materials is referred to as the Materials Price Variance. This variance measures the difference between what was actually paid for the materials versus what was expected (or budgeted) to be paid, focusing on the price aspect.

The Difference Between the Split Cost and the Actual Cost