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:

Points

Specific locations or positions in space, defined by coordinates in a given reference frame, often with no physical size.

Position

The location or arrangement of something in relation to other entities.

Geometric Tolerance

A type of tolerance that defines the form, orientation, location, and runout of a feature on a part.

Permissible Variation

The allowable amount of deviation from a specified dimension, shape, or attribute of a material or component.