When Actual Variable Cost Per Unit Equals Standard Variable Cost

question 50

Multiple Choice

When actual variable cost per unit equals standard variable cost per unit, the difference between actual and budgeted contribution margin is explained by a combination of which two variances?

• A) The sales-volume variance and the fixed-overhead volume variance.
• B) The sales-volume variance and the fixed-overhead budget variance.
• C) The sales-price variance and the fixed-overhead volume variance.
• D) The sales-price variance and sales-volume variance.
• E) The sales-price variance and fixed-overhead budget variance.

Know which pronouncements are issued by FASB and their significance.

Understand the development and enforcement of accounting standards.

Distinguish between primary responsibilities of regulatory bodies in the U.S. financial reporting environment.

Comprehend the significance of notes to financial statements.

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