What is Variance analysis?

Q.  The sum of actual cost and the standard cost is known as variance analysis.
- Published on 03 Sep 15

a. True
b. False

ANSWER: False

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    Discussion

  • Tibebu Yacob (Hawassa, Ethiopia)   -Posted on 10 Jul 24
    The difference between the actual cost and the standard cost is known as variance. The variance can either be favorable or unfavorable. Favorable variance means the actual cost is lower than the standard cost, while unfavorable variance means the actual cost is higher than the standard cost.
  • Jashanjeet    -Posted on 24 Apr 24
    Actually there difference is called variance, not the sum says about that.
    Thank you
  • Jashanjeet    -Posted on 24 Apr 24
    Actually there difference is called standard, not the sum says about that.
    Thank you
  • Emelly   -Posted on 24 Dec 19
    Variance analysis is the total different between the actual cost and standard cost hence it can't be the sum
  • Rahul thapar   -Posted on 02 Oct 19
    The above difference is called cost variance.....

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