Question

Question:Match the variance to the correct definition.

Variance Definition

2. Cost variance

3. Efficiency variance

4. Flexible budget variance

5. Sales volume variance

6. 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

Short answer

Answer

The definition of each type of variance is stated with the appropriate part numb

Step-by-step solution

Definition of variances

In accounting, variances are defined as the study of the reason of difference in the value of the actual amount and the budgeted amount.

Computation of direct material efficiency variance

Variance	Definitions
2 Cost Variance	C
3 Efficiency Variance	E
4 Flexible budget Variance	B
5 Sales volume variance	A
6 Static budget variance	D