When does a mix variance occur?
A)when the actual mix of inputs differs from the standard mix
B)when the actual output differs from the standard output
C)when actual materials used are greater than standard materials
D)when actual labour spending is greater than standard labour spending

Question

Quizplus · Accepted Answer

Mix variance occurs when the actual mix of inputs differs from the standard mix. This can happen when the different inputs are not used in the predetermined proportion, leading to a change in the expected output. Therefore, option A is the correct answer. Options B, C, and D are incorrect as they do not reflect the definition of mix variance.

When Does a Mix Variance Occur