The general model for calculating a price variance is:
A)actual quantity of inputs × (actual price - standard price).
B)standard price × (actual quantity of inputs - standard quantity allowed for output).
C)(actual quantity of inputs at actual price) - (standard quantity allowed for output at standard price).
D)actual price × (actual quantity of inputs - standard quantity allowed for output).

Question

Quizplus · Accepted Answer

The price variance is calculated by taking the actual quantity of inputs and multiplying it by the difference between the actual price and the standard price.

The General Model for Calculating a Price Variance Is