a price variance is the difference between the ______.

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04-11-2021
Business

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a price variance is the difference between the ______.

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adefioyelaoye adefioyelaoye · Answer 1 · 2021-11-16T03:32:26-05:00

A price variance is the difference between the actual price and the standard price multiplied by the actual amount of the input.

Price variance is usually caused by some some factors such as changes in

the demand and supply of goods, the bargaining power of the customer and also the quantity of items ordered at that point in time.

It is used in budget allocations to determine the estimated prices of goods

and services in order to prevent shortage of the funds allocated.

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