Variance Is a Measure of ________ and the Higher the Variance

question 105

Multiple Choice

Variance is a measure of ________ and the higher the variance, ________.

• A)expected profit; the greater the profit
• B)risk; the greater the risk
• C)standard deviation; greater the standard deviation
• D)risk; the lower the risk

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Definitions:

Nonmanufacturing Costs

Expenses that are not directly related to the production of goods, including selling, general, and administrative expenses.

Selling

The process or act of promoting and distributing products or services to customers.

Administrative

Pertaining to the activities related to the management and general operations of an organization, often including tasks like planning, organizing, and controlling.

Work in Process

Goods in various stages of completion throughout the plant, not including raw materials or finished products.