The difference between actual price per unit of input and the standard price per unit of input results in a:
A) Standard variance.
B) Controllable variance.
C) Volume variance.
D) Quantity variance.
E) Price variance.

Question

Quizplus · Accepted Answer

The difference between actual price per unit of input and the standard price per unit of input is called the price variance. This variance helps managers understand the reasons for the difference in costs between what they expected to pay for inputs and what they actually paid.

The Difference Between Actual Price Per Unit of Input and the Standard