Q151
Actual price of material is less than budgeted price, this means that
A.
price variance is favourable
AnswerB.
price variance is unfavourable
C.
cost variance is favourable
D.
cost variance is unfavourable
Answer: Option A
Solution
Answer: Option A
Solution:
Actual price of material is less than budgeted price, this means that price variance is favourable. A price variance is the difference between the actual revenue or cost and the budgeted revenue or cost because of a difference between the actual unit price and the budgeted unit price.