A variance is the difference between actual costs and:
A) selling price.
B) expected costs.
C) activity-based costs.
D)historical costs.

Question

Quizplus · Accepted Answer

A variance is the difference between actual costs and expected costs, which is a commonly used method in budgeting and accounting to track financial performance. Option A is incorrect because selling price is not relevant to cost variances. Option C is incorrect because activity-based costs are a method of assigning costs to specific activities, not a basis for comparing actual and expected costs. Option D is incorrect because historical costs are the actual costs incurred in the past, not a basis for calculating variances.

A Variance Is the Difference Between Actual Costs And