The substances rate variance is computed primarily based totally on the quantity of substances bought for the duration of the period. The declaration is true.
The required details for Price variance in given paragraph
Price variance is the real unit value of an object much less its general value, increased with the aid of using the amount of real gadgets bought. The general value of an object is its predicted or budgeted value primarily based totally on engineering or manufacturing data. The variance indicates that a few prices want to be addressed with the aid of using control due to the fact they're exceeding or now no longer assembly the predicted prices.
Price variance is critical for budgeting and making plans purposes, specially while organizations are figuring out what portions of objects to order.
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