What differences do the usage variances focus on?
A)the difference between actual quantity used and standard quantity allowed for actual production
B)the difference between actual costs of inputs and standard costs of inputs
C)the difference between actual quantity used and standard quantity allowed for budgeted production
D)the difference between actual price and standard quantity allowed in budgeted production

Question

Quizplus · Accepted Answer

Usage variances focus on the difference between the actual quantity used of an input and the standard quantity allowed for actual production. This variance measures how efficiently inputs were used in production. Option B refers to price variances, and options C and D refer to quantity variances. Therefore, A is the best choice.

What Differences Do the Usage Variances Focus On