If Production Was Budgeted at 400 Units and the Actual

question 10

Multiple Choice

If production was budgeted at 400 units and the actual production was 420 units, what would be the flexible budget variance for materials if the actual cost of materials was £4,150 and the budgeted cost per unit is £10?

• A)£50 F
• B)£200 U
• C)£100 F
• D)£150 U

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Definitions:

Bearer Bonds

Bonds not registered to any owner, allowing whoever holds the bond physically to claim the interest payments or the principal.

Unsecured Bonds

Bonds issued without collateral, relying on the issuer's creditworthiness for support.

Term Bonds

Bonds that have a set maturity date on which the principal amount will be repaid to bondholders.

Bond Indenture

A bond indenture is a legal contract specifying the terms and conditions under which a bond is issued, including interest rate, maturity date, and issuer obligations.