What Do Cost Variances Measure

question 54

Multiple Choice

What do cost variances measure?

• A)the difference between the price the company pays and the price its competitors pay
• B)the change in costs over time
• C)the difference between actual and standard cost
• D)the volume discounts companies receive when ordering materials in large quantities

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Definitions:

Naturalistic Observation

A method of research in which people are examined in their usual environments with no alterations made by the observer.

Representative Samples

A subset of a population that accurately reflects the members of the entire population, useful in statistical analysis and research.

Generalizations

Broad statements or conclusions that apply to many instances, often derived from observations or experiments.

Confounding Variables

External factors in an experiment that can affect the outcome, potentially misleading the relationship between the variables being studied.