Question

standard costs are used in the calculation of:
multiple choice
price and quantity variances.
price variances only.
quantity variances only.
price, quantity, and sales variances.
quantity and sales variances.

Explanation:

Standard costs are integral in variance analysis. Price variance is calculated as (Actual Price - Standard Price) × Actual Quantity. Quantity variance is (Actual Quantity - Standard Quantity) × Standard Price. Both use standard costs. Sales variance is more about revenue (not directly cost - based standard in the same sense as price and quantity variances for costs).

Answer:

Price and quantity variances.