A Spending Variance Is Made Up Of

question 108

Multiple Choice

A spending variance is made up of:

• A)volume variance and quantity variance.
• B)price variance and volume variance.
• C)price variance and quantity variance.
• D)price variance and rate variance.

---

Definitions:

Joint Products

The simultaneous production of two or more products from a single process or material, where the products are of significant value but not necessarily the same value.

Sales Revenue

The total amount of money generated from selling goods or services before any expenses are subtracted.

Raw Material

Basic material that is used in the manufacturing process to produce goods, often processed and transformed into finished products.

Cash Outflows

Money that exits a business or an individual's account, typically for payments or purchases.