The Difference Between Actual Quantity of Input Used and the Standard

question 176

Multiple Choice

The difference between actual quantity of input used and the standard quantity of input used results in a:

• A) Quantity variance.
• B) Standard variance.
• C) Budget variance.
• D) Controllable variance.
• E) Price variance.

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Definitions:

Prices

The amount of money required to purchase a good or service, often determined by the forces of supply and demand in the market.

Marginal Utility

The additional satisfaction or benefit received by a consumer from consuming one more unit of a good or service.