A cost variance is the difference between actual cost and standard cost.

Cost Variance

The difference between the actual cost incurred for a particular activity or production and its standard or budgeted cost.

Master the understanding and technique of computing variances, with a focus on price and quantity discrepancies.
Understand the distinctions between standard, actual, and budgeted costs.

Verified Answer

Final Answer :

True

Explanation :

A cost variance is calculated by taking the difference between actual cost and standard cost.

Learning Objectives

Master the understanding and technique of computing variances, with a focus on price and quantity discrepancies.
Understand the distinctions between standard, actual, and budgeted costs.