A quantity variance measures how well a company keeps unit prices of material and labor inputs within standards.

Name: A quantity variance measures how well a company keeps unit prices of material and labor inputs within standards.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A quantity variance measures the difference between the actual and budgeted quantities of materials and labor inputs, not the unit prices. A price variance measures how well a company keeps unit prices of material and labor inputs within standards.

A Quantity Variance Measures How Well a Company Keeps Unit