Asked by
Claire Predtechenskis
on Nov 12, 2024
Verified
Standards are designed to evaluate price and quantity variances separately.
Price Variances
Differences between actual and expected or standard costs that are attributed to changes in the price of goods or services.
Quantity Variances
The difference between actual and standard quantities used in production, affecting cost management and budgeting.
- Clarify the idea of variance and acknowledge its impact on budget management and performance review.
Verified Answer
FM
Learning Objectives
- Clarify the idea of variance and acknowledge its impact on budget management and performance review.