A Favourable Variance

question 23

Multiple Choice

A favourable variance

• A)is an indication that the company is not operating in an optimal manner.
• B)implies a positive result if quality control standards are met.
• C)implies a positive result if standards are flexible.
• D)means that standards are too loosely specified.

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Definitions:

Ski Jackets

A type of outerwear designed for protecting the body from cold temperatures and snow, especially during skiing.

Budgeted Cost

An estimated expense for various activities or projects, predetermined during the budgeting process.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Inventory Planning

The process of determining the optimal quantity and timing of inventory for the purpose of aligning it with sales and production capacity.