If a Variance Analysis Shows That Operations Are Better Than

question 48

Multiple Choice

If a variance analysis shows that operations are better than expected, managers should:

• A) Do nothing
• B) Revise standard costs to make them harder to achieve
• C) Monitor quality to ensure it was maintained
• D) Change the accounting records so that unrealistic expectations aren't imposed in future

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Definitions:

Product Variety

The diversity of different items a firm, industry, or economy produces, providing consumers with multiple options to satisfy their preferences.

Graph Drawing

The process of representing data visually using plots and charts to make the information easier to understand.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Market Price

The amount for which something can currently be purchased or sold within a marketplace, reflecting supply and demand conditions.