Identify Which Statement Below Would Not Be a Possible Reason

question 32

Multiple Choice

Identify which statement below would not be a possible reason for a variance between a flexible budget and actual results.

• A) Labor prices were different than expected.
• B) Material prices were different than expected.
• C) The actual volume of activity was different than expected.
• D) The amount of labor used per unit of output was different than expected.

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Definitions:

Operating Segments

Parts of a company that engage in business activities yielding revenues and incurring expenses.

AASB 136 Impairment of Assets

A standard issued by the Australian Accounting Standards Board detailing the procedures for ensuring that assets are carried at no more than their recoverable amount, and how to record any impairment losses.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount.