Answer the Following Questions Using the Information Below

question 1

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 by using the formula: (AP - BP) AQ is the ________.

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

---

Definitions:

Growth Strategy

A plan devised by a business to increase its size and market share through measures such as market penetration, product expansion, and acquisitions.

Global Competition

The situation where businesses compete with others around the world for market share, resources, and talent, driving innovation and efficiency.

Tariffs

Taxes imposed by a government on imported goods.

International Boundaries

Geographic demarcations that define the territorial limits between different sovereign states.