If Actual Variable Costs Per Unit Are Equal to Estimated

question 65

Multiple Choice

If actual variable costs per unit are equal to estimated variable costs per unit and a static budget is used, fewer units produced will show:

• A) Total actual variable costs = total estimated variable costs
• B) Total actual variable costs < total estimated variable costs
• C) Total actual variable costs > total estimated variable costs
• D) Not enough information is available

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Definitions:

Self-serving Bias

A common tendency for individuals to attribute their successes to personal factors while attributing their failures to external factors.

Factor Analysis

A statistical technique that determines hidden variables or factors responsible for the correlation pattern among a group of observed variables.

Trait

A stable characteristic or quality that describes a person's typical thoughts, feelings, and behaviors.

Social-cognitive

Pertains to the branch of psychology that examines the influence of social contexts and cognitive processes on individuals' behaviors and perceptions.