Which of the following statements is true?
A) Variances are the differences between total actual costs and total standard costs.
B) When actual costs exceed standard costs the variance is favorable.
C) An unfavorable variance results when actual costs are decreasing but standards are not changed.
D) All of the above are true.

Question

Quizplus · Accepted Answer

Variances are indeed the differences between total actual costs and total standard costs. This is a fundamental concept in cost accounting, used to measure performance by comparing what was actually spent against what was expected to be spent (standard costs).

Which of the Following Statements Is True