A Flexible Budget Variance Is $1,500 Favorable for Unit-Related Costs

question 105

Multiple Choice

A flexible budget variance is $1,500 favorable for unit-related costs.This indicates that:

• A)actual costs were $1,500 more than the master budget.
• B)actual costs were $1,500 less than standard for the achieved level of activity.
• C)the sum of the planning and efficiency variances totals $1,500.
• D)actual costs were $1,500 less than for the planned level of activity.

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Definitions:

Interest Rates

The cost of borrowing money or the compensation for the service and risk of lending money, expressed as a percentage of the principal loan amount.

Interest

The price paid for borrowing money, often expressed as a percentage of the principal amount over a certain period.

Net Present Value

A financial metric that calculates the current value of a series of future cash flows by discounting them back to the present time.

Interest Rate

The part of a loan that accrues interest for the borrower, customarily denoted as a yearly percentage of the loan's outstanding sum.