Which of the following is NOT true? Multiple Choice An activity variances describes the cost difference due to producing more/less units than expected. An unfavorable expense activity variance is bad. A spending variance can be divided into a price and quantity variance A spending variance describes the cost difference due to spending more/less to make a unit than expected.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Which of the following is NOT true?
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An activity variances describes the cost difference due to producing more/less units than expected.
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An unfavorable expense activity variance is bad.
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A spending variance can be divided into a price and quantity variance
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A spending variance describes the cost difference due to spending more/less to make a unit than expected.
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