All of the Following Are Criteria for Investigating a Variance

question 112

Multiple Choice

All of the following are criteria for investigating a variance EXCEPT:

• A) Frequency of occurrence
• B) Controllability
• C) Whether favorable or unfavorable
• D) Effect on profitability

---

Definitions:

Factored Inventory Loan

A type of financing where a company borrows money against the value of its inventory, which is often controlled or managed by the lender.

Line Of Credit

A financial arrangement between a lender and a borrower that allows the borrower to draw funds up to a predefined limit as needed.

Operating Cycle

The operating cycle is the duration it takes for a business to convert its inventory and other inputs into cash through sales, encompassing the production and sales process.

Accounts Receivable Turnover

A financial metric that measures how frequently a business can convert its accounts receivable into cash over a specific period.