The Following Information Pertains to the Braun Company for March

question 42

Multiple Choice

The following information pertains to the Braun Company for March: Using the four-variance method of factory overhead variance analysis, what is the volume variance?

• A)$1,200 favorable
• B)$1,800 unfavorable
• C)$3,000 favorable
• D)$1,200 unfavorable

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Definitions:

Responsibility Accounting

The process of measuring and reporting operating data by areas of responsibility.

Responsibility Centers

Responsibility centers refer to distinct segments or areas within a company for which individual managers are accountable for revenue, costs, or investments.

Responsibility Center

An organizational unit for which a manager is assigned responsibility over costs, revenues, or assets.

Cost Center

A division or department within an organization that does not directly generate profits but incurs costs, often evaluated for efficiency.