A total cost variance for materials can be caused by differences in the quantity used,or in the price paid,but not by both.

Question

Quizplus · Accepted Answer

A total cost variance for materials can be caused by both differences in the quantity used and in the price paid. For example, if more materials were used than expected and at a higher price than budgeted, the total cost variance for materials would be negative (unfavorable).

A Total Cost Variance for Materials Can Be Caused by Differences