Which of the Following Would Create an Unfavorable Price Variance

question 6

Multiple Choice

Which of the following would create an unfavorable price variance beyond the control of the manager?

• A) An increase in demand and/or reduction in supply of an input
• B) Unnecessary use of overtime
• C) An increase in the number of activities, i.e., test or procedures ordered
• D) An increase in the number of activities, i.e., tests and procedures that must be redone due to errors

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Definitions:

Lender Fraud

Illegal practices committed by a lender, including deceptive actions to take advantage of a borrower or to approve a loan under false pretenses.

Premium On Bonds Payable

The amount by which a bond's selling price exceeds its face value, reflecting higher market interest rates at the time of issuance.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including the principal and any accrued interest.