Which of the following does the efficiency variance measure?
A)the difference between the quantity used by the company and the quantity used by its competitors
B)the change in quantities used over time
C)the difference between actual and standard quantity used
D)how quickly materials are processed into finished goods

Question

Quizplus · Accepted Answer

The efficiency variance measures the difference between actual and standard quantity used, specifically in terms of how efficiently the company is using its resources to produce the desired output. It is calculated by multiplying the standard price by the difference between the actual and standard quantity used.

Which of the Following Does the Efficiency Variance Measure