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Management · Q147

Management Accounting

Graduate and Post Graduate · Management · question 147

Q147

Difference between actual input variance and budgeted input variance is called

A.
price variance
Answer
B.
actual output price
C.
budgeted output price
D.
actual selling price

Answer: Option A

Solution

Answer: Option A
Solution:
Difference between actual input variance and budgeted input variance is called price variance. Price variance is the difference between the actual price paid by a company to purchase an item and its standard price, multiplied by the number of units purchased.