Which of the following statements is incorrect?
A) A standard costing system helps managers prepare a budget.
B) A price variance measures how well a business keeps unit costs within standards.
C) The actual cost of an input impacts the efficiency variance.
D) A standard costing system helps managers set target levels of performance.

Question

Quizplus · Accepted Answer

The actual cost of an input impacts the price variance, not the efficiency variance. Efficiency variance is concerned with the quantity of inputs used.

Which of the Following Statements Is Incorrect