Which of the following are considered controllable variances?
A) yes yes yes
B) no no yes
C) no yes no
D) yes yes no

Question

Which of the following are considered controllable variances? 
A) yes yes yes 
B) no no yes 
C) no yes no 
D) yes yes no

Quizplus · Accepted Answer

Controllable variances are the variances that can be controlled or influenced by the management of the organization. The following are considered controllable variances:

- Material price variance: This is the difference between the actual cost and the standard cost of the materials used.
- Labor rate variance: This is the difference between the actual labor rate and the standard labor rate.
- Labor efficiency variance: This is the difference between the actual hours worked and the standard hours allowed for the actual output.

Choices A, B and C have at least one option that is not a controllable variance. Therefore, the best choice is D, as it includes all three variances that are considered controllable.

Which of the Following Are Considered Controllable Variances