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Actual price of material is less than budgeted price this means...

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Management Accounting
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Actual price of material is less than budgeted price, this means that

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Correct Answer: Option A
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.
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