When computing standard cost variances, the difference between actual and standard prices multiplied by actual quantity yields a(n): (CMA adapted)
A) combined price and quantity variance.
B) efficiency variance.
C) price variance.
D) quantity variance.

Question

Quizplus · Accepted Answer

The formula for price variance is (Actual Price - Standard Price) x Actual Quantity, which measures the difference in cost due to paying a different price than expected.

When Computing Standard Cost Variances, the Difference Between Actual and Standard