Which of the Following Is True Regarding Variances

question 128

Multiple Choice

Which of the following is true regarding variances?

• A) Unfavorable variances occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.
• B) Favorable variances occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.
• C) Unfavorable variances are always credits.
• D) Favorable variances are always debits.
• E) None of these.

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