The Difference Between Actual and Standard Cost Caused by the Difference

question 141

Multiple Choice

The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the:

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

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of the business.

Company

An organization created by several individuals for the purpose of running and managing a business, which can be either commercial or industrial in nature.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by dividing current assets by current liabilities.

Company

An organized entity engaged in trade of goods, services, or both to consumers, operating with the aim of generating profit.