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

---

Definitions:

Management Commitment

The extent to which management is dedicated to the development, implementation, and continuous improvement of systems and processes.

Productivity Gains

Increases in the output of goods or services per unit of input, typically through improvements in efficiency, technology, or processes.

Management Objectives

Specific goals set by an organization's management team to guide employee actions and business strategies.

Peter Drucker

A renowned management consultant, educator, and author, considered one of the founding figures of modern management theory.