The total variance for any particular cost component is referred to as the:
A) price variance.
B) efficiency variance.
C) budget variance.
D)none of the above.

Question

Quizplus · Accepted Answer

The total variance for any particular cost component is referred to as the budget variance. This variance represents the difference between actual costs and budgeted costs for that particular cost component. It takes into account both the price variance and the efficiency variance for that cost component. Therefore, options A and B are incorrect as they refer to individual variances and not the total variance. Option D is also incorrect as it does not provide a specific answer.

The Total Variance for Any Particular Cost Component Is Referred