Actual price of material is less than budgeted price, this means that
A. price variance is favourable
B. price variance is unfavourable
C. cost variance is favourable
D. cost variance is unfavourable
Answer: Option A
Solution (By Examveda Team)
Actual price of material is less than budgeted price, this means that price variance is favourable. A price variance is the difference between the actual revenue or cost and the budgeted revenue or cost because of a difference between the actual unit price and the budgeted unit price.This Question Belongs to Management >> Management Accounting
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