True or False: A price variance for production inputs is calculated by comparing the actual unit price of an input with the standard unit price of an input.

The statement is accurate because a price variance for production inputs is indeed determined by evaluating the difference between the actual unit price paid for an input and the standard unit price that was expected to be paid. This calculation is essential in managerial accounting as it helps businesses assess how efficiently they are managing their input costs in comparison to their standards. A favorable price variance occurs when the actual price is lower than the standard price, while an unfavorable variance indicates that the actual price is higher than anticipated. By regularly analyzing these variances, managers can identify areas for potential cost savings or necessary action regarding the purchasing of inputs. Understanding this concept is crucial for effective cost management and financial planning within a production environment.