alleryStart learning →2,000 m of cloth bought at Rs 14.50 a metre; std Rs 15. Price variance in Rs?
A1,000 adverse
B29,000 favourable
C500 favourable
D1,000 favourable
Answer & Solution
Correct answer: D. 1,000 favourable
Paying Rs 0.50 less on 2,000 metres saves Rs 1,000, a favourable variance.
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Related questions
Management accounting information is computed by reference to whose needs?Variance analysis compares actual and budgeted cost of which inputs?What happens in management by exception when a deviation from the norm is insignificant?In passive management by exception, when does the manager step in?An adverse variance exists when budget versus actual leads to what effect on profit?Under standard costing, where are fixed costs of unsold goods made in a period carried forVariance analysis is a tool of budgetary control and of what other function?Besides costs, variance analysis can also be carried out for which other item?