The variance that LEAST affects cost control is the:
A)flexible-budget variance
B)direct-material-price variance
C)sales-volume variance
D)direct manufacturing labor efficiency variance

Question

Quizplus · Accepted Answer

The sales-volume variance is a measure of the difference between budgeted revenues and the actual revenues based on the budgeted selling price and the actual sales volume. This variance is not directly related to cost control as it measures the impact of changes in sales volume on revenue. On the other hand, the flexible-budget variance, direct-material-price variance, and direct manufacturing labor efficiency variance are all direct measures of cost control as they reflect the differences between budgeted and actual costs for materials and labor.

The Variance That LEAST Affects Cost Control Is The