Answer the Following Questions Using the Information Below

question 122

Multiple Choice

Answer the following questions using the information below:
These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity.
-Which variance is calculated using the formula (AQ - BQ) BP is the ________.

• A) efficiency variance
• B) price variance
• C) total flexible-budget variance
• D) spending variance

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Definitions:

Σ Symbol

A mathematical notation that represents the sum of a set of terms, known as the summation symbol.

Sum Of Values

The total obtained by adding together a sequence of numbers, quantities, or items.

Mode

The value that occurs most frequently in a data set.

Average

The most representative score in a set of scores.