Question: M 7 - 1 0 Variance analysis ( LO 7 - 2 ) Management accounting uses variance analysis to explain what and why something happened

7 - 10

Variance analysis

(

7 - 2)

Management accounting uses variance analysis to explain what and why something happened in the cost of producing products. It is done by comparing actual outcomes to expected, or standard, costs. What is the expectation when the price of raw materials unexpectedly increases?

Multiple Choice

Favorable quantity variance

Favorable price variance

Unfavorable quantity variance

Unfavorable price variance

M 7 - 1 0 Variance analysis ( LO 7 - 2 )

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