Chapter 23, Problem S23.4SE

Matching terms Learning Objective 2

Match each term to the correct definition.

Terms	Definitions
a. Benchmarking	1. Measures whether the quantity of materials or labor used to make the actual number of outputs is within the standard allowed for the number of outputs.
b. Efficiency variance	2. Uses standards based on best practice.
c. Cost variance	3. Measures how well the business keeps unit costs of materials and labor inputs within standards.
d. Standard	4. A price, cost, or quantity that is expected under normal conditions.