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

---

Definitions:

Thick Fur

A dense layer of hair on animals that serves as insulation against cold temperatures and water.

Permafrost

A thick subsurface layer of soil that remains frozen throughout the year, occurring chiefly in polar regions.

Arctic Tundra

A cold, treeless region where the subsoil is permanently frozen, found in the Arctic circle.

Coniferous Forest

A biogeographic zone dominated by cone-bearing trees, such as pines, spruces, and firs, typically found in northern latitudes where temperatures can be cold.