The matrix approach to variance analysis
A) will yield slightly different variances than the formula approach.
B) is more accurate than the formula approach.
C) does not separate the price and quantity variance calculations.
D) provides a convenient structure for determining each variance.

Question

Quizplus · Accepted Answer

The matrix approach provides a clear structure for calculating each variance, making it a convenient method for variance analysis. While it does not separate price and quantity variances explicitly, these can still be determined by examining the elements of the matrix. The variances obtained through the matrix approach and the formula approach may differ slightly due to rounding or other factors, but neither approach is inherently more accurate than the other.

The Matrix Approach to Variance Analysis