A Price Variance Examines the Difference Between

question 1

Multiple Choice

A price variance examines the difference between

• A) The budgeted and actual per unit cost of inputs
• B) The budgeted and actual number of inputs used to complete an activity
• C) The budgeted and actual number of activities used to produce an output
• D) The budgeted and actual number of outputs produced

---

Definitions:

Equity Earnings

The portion of an investee's profits or losses that is attributed to the investor based on their ownership percentage.

Goodwill Impairment

A write-down of the goodwill account on a company's balance sheet if the fair value of a business unit falls below its carrying value.

Consolidated Shareholders' Equity

The total equity in a company, combining the equity holdings across all subsidiaries and the parent company.

Surplus (Deficit)

A financial situation where income exceeds expenditures (surplus) or expenditures exceed income (deficit) over a given period.