Which Type of Variance Is Characterized by Communality

question 71

Multiple Choice

Which type of variance is characterized by communality?

• A)common variance
• B)specific variance
• C)error variance
• D)systematic variance

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Definitions:

Standard Cost Card

A document listing the standard costs associated with manufacturing a product, including labor, materials, and overhead.

Standard Cost System

A standard cost system estimates the costs of production in advance, using standard rates for materials and labor to assess efficiency and performance.

Cost of Goods Sold

Financial outlays directly resulting from the creation of goods a business trades, including materials and manpower.

Standard Cost Variances

The differences between the expected standard costs of manufacturing a product and the actual costs incurred.