If Actual Costs Are Greater Than Standard Costs, There Is

question 112

Multiple Choice

If actual costs are greater than standard costs, there is a(n)

• A)normal variance.
• B)unfavourable variance.
• C)favourable variance.
• D)error in the accounting system.

Understand the impact of cost allocations on product and business unit profitability.

Identify and assess the implications of bottleneck operations on production decisions.

Distinguish between relevant and irrelevant costs in various decision-making scenarios.

Understand and calculate contribution margin and contribution margin ratio.