​ *Actual Hours Are Equal to Standard Hours for Units Produced.​

question 124

Multiple Choice

​
*Actual hours are equal to standard hours for units produced.​
-Planned sales are 10,000 units at $7.00 per unit. Actual sales are 11,000 units at $6.50 per unit. Which of the following statements is not true?

• A)The revenue price variance is unfavorable.
• B)The revenue volume variance is favorable.
• C)The total revenue variance is unfavorable.
• D)The revenue volume variance is $7,000.

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Definitions:

Constant Growth Stock

A stock assumed to pay dividends that grow at a constant rate indefinitely, making it possible to use dividend discount models for valuation.

Warrants

Financial derivatives that give the right, but not the obligation, to buy or sell a security at a specific price before a certain date.

Contracts

Legally binding agreements between two or more parties that outline terms and conditions for specified activities or transactions.

Fixed Price

A set cost that does not change over time, regardless of variations in market conditions or demand.