Which of the Following Factors Results in an Unfavorable Fixed

question 13

Multiple Choice

Which of the following factors results in an unfavorable fixed factory overhead volume variance?

• A) A budgeted increase in sales that requires more advertising expenses
• B) The payment of long-term debt payments
• C) An unexpected increase in the cost of utilities
• D) Work stoppages caused by lack of materials

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Definitions:

Supplier Certification

A process ensuring suppliers meet predefined quality standards and requirements for products or services.

Lower Costs

The reduction of expenditure or expenses in the production, acquisition, or maintenance of goods and services without compromising quality.

Purchase Price

The amount of money paid to acquire a good or service, including the base cost plus any additional charges or fees.

Management Philosophy

A belief system or framework that guides the managerial decisions, actions, and behaviors of an organization.