00:01
Talk about price variance, we are talking about the difference between actual and standard.
00:19
So actual minus standard or budgeted is another word you could use.
00:37
So like for a manufacturing company, they're budgeting, you know, how many of a certain product they're going to need.
00:47
So like if they budgeted the product to cost.
00:51
$10, but it maybe only cost them $8, then that means that variance is a negative 2, for example.
01:01
So it costs two less dollars than they had planned, which in this example that would be a good thing.
01:09
So, but then they look at how many they had to purchase, the actual amount they had to purchase versus the budgeted amount.
01:18
So in this question, it says price variance focuses on the difference between the difference actual price and standard price for actual quantity for units actually produced and that is yes...