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:

State Law

Legislation that is enacted and enforced by a state's legislative body, governing matters not reserved to the federal government by the Constitution.

Contract Clause

A provision in the U.S. Constitution that prohibits states from passing any law that impairs the obligation of contracts, aiming to protect contractual agreements from state interference.

Minimum Wage Law

Legislation establishing the lowest hourly wage that employers can legally pay their workers.

Unconstitutional

Something that does not conform to the principles or rules set out in a country's constitution, rendering it invalid or unenforceable.