In management control, an efficiency variance is also referred as

A. control variance

B. uncontrolled variance

C. usage variance

D. effective variance

Answer: Option C

Solution(By Examveda Team)

In management control, an efficiency variance is also referred as usage variance. Efficiency variance is the difference between the theoretical amount of inputs required to produce a unit of output and the actual number of inputs used to produce the unit of output. The expected inputs to produce the unit of output are based on models or past experience.