In the general model,an efficiency variance is calculated as
A)(SP$\times$ AQ)- (SP$\times$ SQ)
B)(AP$\times$ SQ)- (SP$\times$ SQ)
C)(AP$\times$ AQ)- (SP$\times$ SQ)
D)(AP$\times$ AQ)- (SP$\times$ AQ)

Question

Quizplus · Accepted Answer

The formula for efficiency variance is (Actual quantity of inputs used x Standard price of inputs) - (Standard quantity of inputs allowed for actual output x Standard price of inputs). Option A is the only one that follows this formula correctly.

In the General Model,an Efficiency Variance Is Calculated as A)(SP ×\times×

In the General Model,an Efficiency Variance Is Calculated as
A)(SP $\times$