What Differences Do the Usage Variances Focus On

question 23

Multiple Choice

What differences do the usage variances focus on?

• A)the difference between actual quantity used and standard quantity allowed for actual production
• B)the difference between actual costs of inputs and standard costs of inputs
• C)the difference between actual quantity used and standard quantity allowed for budgeted production
• D)the difference between actual price and standard quantity allowed in budgeted production

---

Definitions:

Principal

The original sum of money borrowed in a loan or the initial amount of investment, not including interest or profits.

Simple Interest

Interest assessed only on the base amount, or on whatever portion of the base amount has not been settled.

Interest

Payment made for the use of borrowed money, calculated as a percentage of the principal sum.

Simple Interest

Interest calculated only on the initial amount of money (principal), not on the interest accrued over time.