A variance is the difference between:
A) an actual cost and a budgeted cost.
B) a standard cost and a budgeted cost.
C) actual costs at two different points of time.
D) budgeted costs at two different points of time.

Question

Quizplus · Accepted Answer

A variance is the difference between an actual cost and a budgeted cost. Standard costs are a predetermined cost that is used for comparison to actual costs. Actual costs at two different points of time or budgeted costs at two different points of time do not necessarily show if there is a difference in the planned and actual costs.

A Variance Is the Difference Between