In standard costing, what do a materials price variance and a materials quantity variance measure?

In standard costing, what do a materials price variance and a materials quantity variance measure?

• A. Labor variances are used for all materials.
• B. Price variance measures the price difference; quantity variance measures inventory valuation variance.
• C. Price variance measures the difference between actual and standard price; quantity variance measures the efficiency of usage.
• D. Price variance measures the difference between actual and standard price; quantity variance measures the efficiency of usage versus standard.

Answer: (D)