Which of the Following Variances Is Least Likely to Provide

question 122

Multiple Choice

Which of the following variances is least likely to provide useful information for making decisions, if calculated as part of a comprehensive set of variances?

• A) Variable overhead spending
• B) Production volume variance
• C) Direct material price
• D) Direct labour efficiency

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Definitions:

United Nations Convention

An international treaty or agreement formulated under the auspices of the United Nations, pertaining to various global issues.

International Sales Contract

A legally binding agreement between parties from different countries for the sale and purchase of goods.

Market Price

The present cost at which a service or asset is available for purchase or sale on the market.

Notice of Breach

A formal notification given to a party indicating that they have failed to fulfill their contractual obligations.