Which of the Following Is the Correct Formula for Measuring

question 132

Multiple Choice

Which of the following is the correct formula for measuring a cost variance?

• A) Cost Variance = (Actual Cost + Standard Cost) / Actual Quantity
• B) Cost Variance = (Actual Cost - Standard Cost) × Actual Quantity
• C) Cost Variance = (Actual Cost + Standard Cost) + Actual Quantity
• D) Cost Variance = (Actual Cost - Standard Cost) - Actual Quantity