What Formula Is Used to Determine the Usage Variance

question 23

Multiple Choice

What formula is used to determine the usage variance?

• A)(AQ − SQ)SP
• B)(SQ − AQ)SP
• C)(AQ − AQ)SP
• D)(SQ + AQ)SP

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Definitions:

Income Statement

The Income Statement, also known as a profit and loss statement, is a financial report that shows a company's revenues, expenses, and profits or losses over a specific period.

Unearned Fees

Income received by a company for services or goods that have yet to be provided or delivered.

Supplies Expense

The cost incurred from acquiring supplies used in the operation of a business, not directly tied to production.

Adjusted Trial Balance

A compilation of every account along with its adjusted balances, utilized for the creation of financial reports.