An Unfavorable Variance Indicates That ________

question 96

Multiple Choice

An unfavorable variance indicates that ________.

• A) the actual costs are less than the budgeted costs
• B) the actual revenues exceed the budgeted revenues
• C) the actual units sold are less than the budgeted units
• D) the budgeted contribution margin is more than the actual amount

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Definitions:

Producer Surplus

Producer surplus refers to the difference between what producers are willing to accept for a good or service versus what they actually receive, essentially measuring the benefit or surplus producers gain from transactions.

Monthly Supply

Monthly Supply refers to the total quantity of a good or service that is available for purchase within a month.

Price Decreases

A reduction in the cost at which goods or services are sold, leading to an increase in the quantity demanded.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, often reflected as a measure of producer welfare.