Which two measures are different ways to examine variances?

Which two measures are different ways to examine variances?

• A. Dollar amounts and percentages
• B. Total costs and total revenues
• C. Fixed costs and variable costs
• D. Actual and budgeted costs

Answer: (A)

Variances can be analyzed in two forms: dollar variances and percentage variances. The dollar variance shows the absolute difference between actual and budgeted amounts, telling you exactly how much you are over or under. The percentage variance expresses that same difference relative to the budget (or base), making it easier to compare across items of different sizes. For example, if actual costs are 105,000 and budgeted costs are 100,000, the variance is 5,000 in dollars and 5% as a percentage of the budget. The other options describe cost classifications, or the inputs used to compute variances, not two distinct ways to measure the size of a variance.

Variances can be analyzed in two forms: dollar variances and percentage variances. The dollar variance shows the absolute difference between actual and budgeted amounts, telling you exactly how much you are over or under. The percentage variance expresses that same difference relative to the budget (or base), making it easier to compare across items of different sizes. For example, if actual costs are 105,000 and budgeted costs are 100,000, the variance is 5,000 in dollars and 5% as a percentage of the budget. The other options describe cost classifications, or the inputs used to compute variances, not two distinct ways to measure the size of a variance.