Which of the Following Statements Is True

question 195

Multiple Choice

Which of the following statements is true?

• A) Variances are the differences between total actual costs and total standard costs.
• B) When actual costs exceed standard costs the variance is favorable.
• C) An unfavorable variance results when actual costs are decreasing but standards are not changed.
• D) All of the above are true.

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Definitions:

Low-Value Product

Products that have a low price point or perceived economic value to the consumer, often resulting in slim profit margins.

High Demand

A situation where the desire and need for a product or service greatly exceeds the available supply within a market.

Transportation

The movement of goods and people from one location to another using various modes such as road, rail, air, and sea.

Supply Chain

The interconnected network of businesses and processes involved in the production, handling, and distribution of goods or services, from raw materials to end-user.