The term used to refer to persistent variances (i.e., those that are likely to recur until corrected) is
A) Systematic variance.
B) Random variance.
C) Standard cost variance.
D) Non-controllable variance.
E) Flexible-budget variance.

Question

Quizplus · Accepted Answer

Systematic variance refers to variances that are persistent and likely to recur until corrected. Random variance, on the other hand, refers to variances that occur by chance and are unpredictable. Standard cost variance is a measure of the difference between actual and budgeted costs based on a predetermined standard cost. Non-controllable variance refers to variances that are beyond the control of the entity, while flexible-budget variance refers to the difference between actual and flexible budget amounts. None of these terms specifically refer to persistent variances.

The Term Used to Refer to Persistent Variances (I