The Two Questions Variance Analysis Focuses on Are

question 13

Multiple Choice

The two questions variance analysis focuses on are

• A) Is output greater than or less than expected and is the difference a matter of concern
• B) Is financial performance better or worse than expected and is the difference a matter of concern
• C) Is output greater than or less than expected and are managers responsible for the difference
• D) Is financial performance better or worse than expected and are managers responsible for the difference

---

Definitions:

Efficient Output Level

The quantity of output at which a firm's average total cost is minimized.

Units

Basic quantities or measurements used as a standard to express the amount, level, or size of something.

Monopolistic Competitor

A market structure in which many companies sell products or services that are similar but not identical, allowing for some degree of market power.

Perfect Competitor

A theoretical market structure where numerous small firms sell identical products, and no single seller can influence the market price.