Which of the Following Would Cause a Variance to Be

question 6

Multiple Choice

Which of the following would cause a variance to be unfavorable?

• A)The actual price is less than the standard price.
• B)The standard hours allowed are less than the actual hours worked.
• C)The overhead costs incurred are less than the flexible budget amount.
• D)All of these answer choices are correct.

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Definitions:

Constant Growth Rate

A steady rate at which a variable, such as company earnings or dividends, increases over a specific period.

Required Return

The minimum expected return by investors for investing in a risky asset, taking into account the risk associated with the asset.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamental analysis.

Free Cash Flow (FCF)

Cash generated by a company after deducting capital expenditures from its operating cash flow, available for debt repayment, dividends, or reinvestment.