Question

A price variance is the difference between the Blank______.

Multiple choice question.

standard quantity allowed and the actual quantity used multiplied by the standard price


actual price and the standard price multiplied by the actual amount of the input


standard quantity allowed and the actual quantity used multiplied by the actual price


actual price and the standard price multiplied by the standard amount allowed

Answer 1

The correct answer is:

**actual price and the standard price multiplied by the actual amount of the input**.

This reflects how price variance is calculated, focusing on the difference between the actual price paid for an input and its standard price, multiplied by the actual quantity of that input used.