Asked by
Lucas Nolan
on Oct 15, 2024Verified
A cost variance can be further separated into the quantity variance and the price variance.
Cost Variance
The difference between the budgeted or planned costs and the actual costs incurred.
Quantity Variance
A measure used in cost accounting to calculate the difference between the actual quantity of materials or labor used and the expected quantity.
Price Variance
The difference between the actual cost and the standard cost of an item, often analyzed to manage and control spending effectively.
- Grasp the concept of cost variance and its components.
Verified Answer
AB
Learning Objectives
- Grasp the concept of cost variance and its components.