When calculating cost variance under a standard costing system we must :

CS Executive · Cost and Management Accounting · PYQS · December 2019
When calculating cost variance under a standard costing system we must :
(A) Compare actual costs with those that were budgeted
(B) Compare standard costs with actual costs at the standard level of activity
(C) Compare actual costs with standard costs at the actual level of activity
(D) Compare actual outputs against budgeted outputs

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Standard Costing

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