What are standard cost variances?
A)Differences between standard and actual costs
B)Amounts that exceed budgeted amounts
C)Useful industry-developed amounts that can be used by companies to evaluate their performance
D)Differences between budgeted and standard amounts

Question

Quizplus · Accepted Answer

Standard cost variances are the differences between the standard (budgeted) costs and actual costs. This helps companies evaluate their performance and identify areas of improvement. Option B is incorrect as it refers to variances exceeding budgeted amounts, which is not necessarily related to standard costs. Option C is not a correct description of standard cost variances. Option D confuses budgeted and standard amounts, which are distinct concepts.

What Are Standard Cost Variances