The difference between standard and actual costs is
A)considered to be an ideal standard.
B)a variance by exception.
C)the budgeted cost of one item of product.
D)a standard cost variance.

Question

Quizplus · Accepted Answer

A standard cost variance is the difference between the standard cost (the expected cost of inputs in the production process) and the actual cost incurred. This variance helps businesses identify areas where they are spending more or less than expected.

The Difference Between Standard and Actual Costs Is