If an actual price of material is $700 and budgeted price is $900, then the
A. cost variance is favourable
B. cost variance is unfavourable
C. price variance is favourable
D. price variance is unfavourable
Answer: Option C
Solution(By Examveda Team)
If an actual price of material is $700 and budgeted price is $900, then the price variance is favourable. If the actual cost incurred is lower than the standard cost, this is considered a favorable price variance.This Question Belongs to Management >> Management Accounting
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