Which of the Following Formulas Computes Usage (Efficiency) Variance

question 10

Multiple Choice

Which of the following formulas computes usage (efficiency) variance?

• A) (Actual Quantity - Average Quantity) × Standard Price per Unit
• B) (Actual Quantity - Standard Quantity) × Standard Price per Unit
• C) (Actual Quantity - Fixed Quantity) × Standard Price per Unit
• D) (Actual Quantity - Variable Quantity) × Standard Price per Unit
• E) None of these.

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Definitions:

Jejunum

The middle segment of the small intestine, involved in the absorption of nutrients from digested food.

Cystic Duct

The duct that connects the gallbladder to the common bile duct, allowing bile to flow into and out of the gallbladder.

Hepatic Duct

A bile duct that conveys bile from the liver to the duodenum.

Bile Duct

A series of thin tubes that move bile from the liver and gallbladder to the small intestine.