1. What is a variance percentage? a) The difference between the budgeted cost and the actual cost b) The cost that a company uses to plan budgets for future periods c) What percentage of the budget that the variance makes up d) A report that details all the differences in costs Which of the following situations would produce a standard cost variance? a) When sales volume is less than projected volume. b) When it takes longer than expected to assemble a product. c) When the cost to purchase a key ingredient does not change. d) When the sales price is discounted. 2. 3. When is a variance in standard costs favorable? a) When it is small b) When it results in less money being spent c) When it results in more money being spent d) When it is big