Which of the Following Is the Correct Formula to Measure

question 68

Multiple Choice

Which of the following is the correct formula to measure cost variance?

• A)Cost Variance = (Actual Cost + Standard Cost)÷ Actual Quantity
• B)Cost Variance = (Actual Cost - Standard Cost)× Actual Quantity
• C)Cost Variance = (Actual Cost + Standard Cost)+ Actual Quantity
• D)Cost Variance = (Actual Cost - Standard Cost)- Actual Quantity

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Definitions:

Ordinal Data

Ordinal data is a type of categorical data with a set order or scale, but without a standardized difference between the categories, such as rankings or levels of satisfaction.

Ordered

Arranged or organized in a sequence according to some specific rule or set of rules.

Ranked

The process or result of ordering or classifying entities based on criteria or measurements to establish a hierarchy or priority.

Interval Data

A type of numerical data that contains meaningful distances between measurements, but no true zero point.