An Unfavorable Flexible-Budget Variance for Variable Costs May Be the Result

question 60

Multiple Choice

An unfavorable flexible-budget variance for variable costs may be the result of ________.

• A) using more input quantities than were budgeted
• B) paying lower prices for inputs than were budgeted
• C) selling output at a higher selling price than budgeted
• D) selling less quantity compared to the budgeted

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Definitions:

NAV

NAV, or Net Asset Value, is the per-share value of a mutual fund or an exchange-traded fund (ETF), calculated by dividing the total value of all the securities in the portfolio, minus any liabilities, by the number of shares outstanding.

Mutual Fund

A financial instrument that pools money from various investors to invest in different types of securities, including stocks, bonds, money market instruments, and additional assets.

New York Time

The time zone observed in New York, typically Eastern Standard Time (EST) or Eastern Daylight Time (EDT), depending on the time of year.

SEC

The Securities and Exchange Commission, a U.S. regulatory agency responsible for enforcing federal securities laws and regulating the securities industry.