A variance is considered to be
A)the gap between an actual result and a benchmark amount.
B)the required number of inputs for one standard output.
C)the difference between an actual result and a budget amount.
D)the difference between a budgeted amount and a standard amount.
E)a standard.

Question

Quizplus · Accepted Answer

A variance is the difference between an actual result and a budgeted amount. It helps to identify areas where actual results are not meeting expectations and allows for corrective action to be taken. A Gap between actual result and benchmark amount is generally referred to as performance gap. A required number of inputs for one standard output is known as productivity ratio. The difference between a budgeted amount and a standard amount is referred to as a variance. A standard is a predetermined level of performance or expectation.

A Variance Is Considered to Be