Q156
In management control, an efficiency variance is also referred as
A.
control variance
B.
uncontrolled variance
C.
usage variance
AnswerD.
effective variance
Answer: Option C
Solution
Answer: Option C
Solution:
In management control, an efficiency variance is also referred as usage variance. Efficiency variance is the difference between the theoretical amount of inputs required to produce a unit of output and the actual number of inputs used to produce the unit of output. The expected inputs to produce the unit of output are based on models or past experience.