The general model for calculating a price variance is
A)actual quantity of inputs x (actual price - standard price).
B)standard price x (actual quantity of inputs - standard quantity allowed for output).
C)(actual quantity of inputs at actual price) - (standard quantity allowed for output at standard price).
D)actual price x (actual quantity of inputs - standard quantity allowed for output).

Question

Quizplus · Accepted Answer

The correct formula for calculating a price variance is actual quantity of inputs multiplied by the difference between the actual price and the standard price. This measures how much more or less was paid for the inputs than was expected.

The General Model for Calculating a Price Variance Is