The Following Data for May Has Been Provided by Mccawley

question 172

Multiple Choice

The following data for May has been provided by Mccawley Corporation. The volume variance for May is:

• A) $2,070 U
• B) $4,140 U
• C) $4,140 F
• D) $2,070 F

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Definitions:

Sales

Transactions involving the exchange of goods or services for money.

Acid Test Ratio

Used to determine the amount of assets that can be quickly turned into cash to pay current liabilities; acid test ratio equals total of cash plus receivables divided by total current liabilities.

Balance Sheet

A summary report detailing a company's assets, debts, and equity held by shareholders at a particular moment.

Income Statement

The financial statement that shows the revenues, the expenses, and the net income for a certain period of time.