The Difference Between Actual Price Per Unit of Input and the Standard

question 161

Multiple Choice

The difference between actual price per unit of input and the standard price per unit of input results in a:

• A)Standard variance.
• B)Quantity variance.
• C)Volume variance.
• D)Controllable variance.
• E)Price variance.

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Definitions:

Efficient Production Technique

A method of production that achieves the highest output with the given set of inputs or resources, minimizing waste and costs.

Labor Resources

These are the human workforce available for physical and intellectual work towards producing goods and services.

Cost per Unit

The expense incurred to produce, acquire, or maintain one unit of a product or service, often used to analyze and manage business efficiency.

Economically Efficient

A condition in which a system optimizes the allocation of resources, producing the maximum number of goods and services with the least waste.