A Cost Variance Can Be Further Separated into the Quantity

question 221

True/False

A cost variance can be further separated into the quantity variance and the price variance.

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Definitions:

Increase

A rise or growth in quantity, size, strength, or another measure.

Dollars

A unit of currency used in various countries, including the United States, Canada, Australia, and New Zealand.

Residuals

Differences between observed and predicted values in a statistical model, used to assess the model's fit.

Error Variable

The difference between observed and predicted values in a statistical model, often referred to as the residual.