alleryStart learning →Variance analysis serves as a tool of what?
AShare valuation
BBudgetary control
CTax planning
DStatutory audit
Answer & Solution
Correct answer: B. Budgetary control
It assesses gaps between budgeted or standard amounts and actuals for control and performance evaluation.
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Related questions
Standard 500 kg, used 480 kg, standard price Rs 40. Usage variance?Budgeted sales were Rs 500,000 and actual sales Rs 540,000. The variance is?Standard cost allowed is Rs 60,000 and actual material cost is Rs 63,500. Total variance?Variable overhead of Rs 12,600 for 1,000 hours; standard Rs 12 per hour. Spending varianceStandard 1,800 kg allowed, 1,900 kg used, standard Rs 20 per kg. Usage variance?2,000 kg bought at Rs 52 against a standard Rs 50 per kg. Price variance?Variable cost is $300 per coach, fixed cost $1,000 a month. Full unit cost at 100 coaches?Neely et al. define performance measurement as quantifying what?