What is the difference between input and output costs treated as?
A.
Variance Cost
B.
Actual Cost
C.
Scrap Cost
D.
Transfer Cost
The Answer Is:
A
This question includes an explanation.
Explanation:
According to the Business Process Training and Certification - Oracle University document2, variance cost is the difference between input and output costs treated as. Variance cost is calculated by subtracting the output cost from the input cost for each work order operation. Variance cost reflects the efficiency or inefficiency of the production process. It can be positive or negative depending on whether the input cost is higher or lower than the output cost.
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