In the context of management control, what is another term for an efficiency variance?

Multiple choice question for Direct Cost Variances and Management Control. Select an option, then review the explanation below.

Explanation

An efficiency variance is commonly known as usage variance because it measures the difference in the amount of resources used compared to the standard allowed.

Practice related questions from the same subject.

1.Within the hierarchy of costing and budgeting, which of the following represents a product sustaining cost?
2.Given that the actual cost of a material is $700 while the planned cost was $900, what type of variance is observed?
3.Given that the actual outcome is $65,000 and the static budget variance amounts to $35,000, what is the value of the static budget?
4.What term is used to describe the anticipated performance of a company?
5.Given that the actual labor cost is $1200 while the planned labor cost is $1000, what is the nature of the labor price variance?

In the context of management control, what is another term for an efficiency variance?

Explanation

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