Match the Variance to the Correct Definition

question 37

Multiple Choice

Match the variance to the correct definition.
-Static budget variance

• A)measures how well the business uses its materials or human resources
• B)the difference between the expected results in the flexible budget for the actual units sold and the static budget
• C)the difference between actual results and expected results in the flexible budget for the actual units sold
• D)measures how well the business keeps unit material and labor costs within standards
• E)the difference between actual results and the expected results in the static budget

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Definitions:

Poisson Approximation

A method used to approximate the distribution of a number of events in a fixed interval of time or space, assuming the events occur with a known constant mean rate and independently of the time since the last event.

Trials

In probability, the term refers to the execution of an experiment or the number of times an experiment is run.

Poisson Distribution

A statistical distribution showing the probability of a given number of events occurring in a fixed interval of time or space.

Discrete Probability Distribution

A mathematical function that represents the probabilities of occurrence of different possible outcomes for a discrete random variable.