________ Variances Are Calculated by Comparing the Master Budget to the Flexible

question 23

Multiple Choice

________ variances are calculated by comparing the master budget to the flexible budget,and ________ variances are calculated by comparing actual costs to the flexible budget (not the master budget) .

• A)Volume;volume
• B)Volume;spending
• C)Spending;volume
• D)Spending;spending

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Definitions:

Market Value

The existing price for buying or selling an asset or service in the marketplace.

Retained Earnings

The portion of a company's profits that are kept and not paid out as dividends to shareholders, often reinvested into the business.

Special Dividend

A one-time distribution of earnings to shareholders, outside of the regular dividend schedule.

Stock Repurchase

A decision by a company to buy back its own shares from the marketplace, potentially to increase the value of remaining shares.