Favorable Volume Variances May Be Harmful When

question 129

Multiple Choice

Favorable volume variances may be harmful when

• A) machine repairs cause work stoppages
• B) supervisors fail to maintain an even flow of work
• C) production in excess of normal capacity cannot be sold
• D) all of the answers are correct

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Definitions:

Transactions

Financial activities or events that result in the exchange of assets, liabilities, or equity between entities.

Sole Stockholder

An individual or entity that owns 100% of a corporation’s stock, holding complete control over the firm.

Money Units

A standard unit of measure for accounting transactions, typically representing the currency in which a financial transaction is recorded.

Transactions

Financial activities or events that affect the financial position of a business, such as sales and purchases.