An efficiency variance reflects the difference between ________.
A) actual input quantities used last period and current period
B) an actual input quantity and a budgeted input quantity
C) an actual input quantity used in a company and its main competitors
D) a standard input quantity in a company and its main competitors

Question

Quizplus · Accepted Answer

An efficiency variance is a type of variance that compares the actual input quantity with the budgeted input quantity. It measures the efficiency of the production process by assessing the difference between the actual amount of input used and the amount that should have been used according to the budget. Therefore, the correct choice is B - an actual input quantity and a budgeted input quantity.

An Efficiency Variance Reflects the Difference Between ________