The Difference Between the Actual Cost Incurred and the Standard

question 125

Multiple Choice

The difference between the actual cost incurred and the standard cost is called the:

• A) Flexible variance.
• B) Price variance.
• C) Cost variance.
• D) Controllable variance.
• E) Volume variance.

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Definitions:

Significant

A term used in statistics to denote that a result is not likely to occur by chance alone, and therefore indicates a meaningful difference or relationship.

Level of Significance

A threshold used in statistical hypothesis testing to decide whether to reject the null hypothesis, usually expressed as a probability value (p-value).

Inclusion of Education

The practice of incorporating educational elements, values, or practices into broader spheres or systems.

Regression Model

A statistical method for estimating the relationships among variables, often used to predict a response variable's values from one or more predictor variables.