Lack of Enough Sales Orders to Keep a Factory Operating

question 41

Multiple Choice

Lack of enough sales orders to keep a factory operating at normal capacity results in an unfavorable:

• A) direct materials quantity variance.
• B) fixed factory overhead volume variance.
• C) budgeted variable factory overhead variance.
• D) fixed factory overhead controllable variance.

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Definitions:

Receivables Balance

The cumulative sum of funds due to a business from its clients for products or services provided on a credit basis.

Accounts Receivable Period

The typical duration in days that a company requires to receive payment following a sale.

Sales

The activities involved in selling goods or services directly to consumers or end-users.