Which of the Following Statements Is True

question 27

Multiple Choice

Which of the following statements is true?

• A) Because gross profit percentages are so consistent from period to period, they are not very useful for analyzing one company over time.
• B) Because gross profit percentages are so variable across industries, they are most useful in comparing companies from different industries.
• C) Because gross profit percentages are so variable across industries, they are more useful in analyzing one company over time.
• D) Because gross profit percentages are so consistent across industries, they are most useful in comparing

Compute variable overhead efficiency and rate variances to analyze overhead cost control.

Interpret variance analysis results to inform budgetary control and performance improvement strategies.

Apply the concept of variance analysis in different manufacturing scenarios to assess operational efficiency.

Understand and apply the concept of standard costing in manufacturing.