Q189
If an actual price of material is 700 and budgeted price is 900, then the
A.
cost variance is favourable
B.
cost variance is unfavourable
C.
price variance is favourable
AnswerD.
price variance is unfavourable
Answer: Option C
Solution
Answer: Option C
Solution:
If an actual price of material is 900, then the price variance is favourable. If the actual cost incurred is lower than the standard cost, this is considered a favorable price variance.