The General Model for Computing a Price Variance Is

question 101

Multiple Choice

The general model for computing a price variance is:

• A)(actual price - standard price)x standard quantity of inputs.
• B)(actual price - standard price)x actual quantity of inputs.
• C)(actual quantity of inputs - standard quantity of units)x standard price.
• D)(actual quantity - standard quantity)x actual price.

---

Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Prepaid Rent

An asset account that represents rent payments made in advance of the rental period.

Rent Expense

The cost incurred by renting property or equipment for business or personal use, typically recognized in accounting over the rental period.

Expected Life

The anticipated duration a fixed asset is likely to be useful in business operations before needing replacement.