Match the variance to the correct definitions. Cost Variance Efficiency variance
ID: 2578506 • Letter: M
Question
Match the variance to the correct definitions.
Cost Variance
Efficiency variance
Flexible budget variance
sales volume variance
static budget variance
a.
The difference between the expected results in the flexible budget for the actual units sold and the static budget.
b.
The difference between actual results and the expected results in the flexible budget for the actual units sold.
c.
Measures how well the business keeps unit costs of material and labor inputs within standards.
d.
The difference between actual results and the expected results in the static budget.
e.
Measures how well the business uses its materials or human resources.
a.
The difference between the expected results in the flexible budget for the actual units sold and the static budget.
b.
The difference between actual results and the expected results in the flexible budget for the actual units sold.
c.
Measures how well the business keeps unit costs of material and labor inputs within standards.
d.
The difference between actual results and the expected results in the static budget.
e.
Measures how well the business uses its materials or human resources.
Explanation / Answer
Cost Variance Measures how well the business keeps unit costs of material and labor inputs within standards. Efficiency variance Measures how well the business uses its materials or human resources. Flexible budget variance The difference between actual results and the expected results in the flexible budget for the actual units sold. sales volume variance The difference between the expected results in the flexible budget for the actual units sold and the static budget. static budget variance The difference between actual results and the expected results in the static budget.