A Favorable Variance

question 27

Multiple Choice

A favorable 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:

Gold Standard

An arrangement whereby the currencies of most countries are convertible into gold at a fixed rate.

World War I

A global conflict that occurred from 1914 to 1918, involving many of the world's great powers divided into two opposing alliances: the Allies and the Central Powers.

International Financial System

The global network of government institutions, financial markets, currencies, and regulations that support international trade and investment.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.