Question

A total variance is best defined as the difference between total

a. actual costs and total cost applied for the standard output of the period
b. standard cost and total cost applied to production
c. actual cost and total standard cost of the actual input of the period
d. actual cost and total cost applied for the actual output of the period.

Answer 1

A total variance is the difference between actual costs and total cost applied for the standard output of the period.

Step-by-step explanation:

A total variance is best defined as the difference between actual costs and total cost applied for the standard output of the period.

It represents the deviation or variation between the actual costs incurred and the costs that were expected based on the standard output. Total variance helps in analyzing the efficiency and cost control measures of a business.