The objective of standard cost variance analysis is:
A) To identify standard cost variances and to explain the reasons for their occurrences
B) To explore the reason or reasons for variation in sales prices of products offered in the company's main line of business
C) To identify the standard deviation in budgeted numbers over a period of time
D) To purge cost data of the effects of inflation

Question

Quizplus · Accepted Answer

The calculation of variances is only the first step in standard cost variance analysis. Equally, or more, important is determining the appropriate explanation of the reason for the differences.

The Objective of Standard Cost Variance Analysis Is