The Formula for the Volume Variance Is

question 11

Multiple Choice

The formula for the volume variance is

• A) (Actual output-Budgeted output)*Budgeted cost/output
• B) ((Actual cost/Actual input)-(Budgeted cost/Budgeted input))*Actual quantity of input used
• C) (Actual inputs/Actual activity-Budgeted inputs/Budgeted activity)*Budgeted cost/input* Actual activities produced
• D) (Actual activity/Actual output-Budgeted activity/Budgeted output)*Budgeted cost per activity*Actual output

---

Definitions:

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often associated with the degree of risk or uncertainty.

Systematic Risk

The risk inherent to the entire market or a whole market segment, which cannot be mitigated through diversification alone.

Opportunity Sets

The array of possible investment opportunities or combinations that are available to an investor.

Systematic Risk Principle

A principle stating that investors need to be compensated for taking on increased levels of undiversifiable risk.