Which One of the Following Is a More Serious Concern

question 92

Multiple Choice

Which one of the following is a more serious concern in terms of an adverse variance from budget?

• A)a negative variance of $10,000 in budget expenditures
• B)a $10,000 shortfall in value earned on the project to date
• C)a positive variance of $10,000 in budget expenditures
• D)a $10,000 surplus in value earned on the project to date

---

Definitions:

Average Cost

The total cost of production divided by the number of units produced, reflecting the average expense per unit.

Standard Meals

Pre-defined, fixed meals that are regularly available in establishments like restaurants or cafeterias.

Producing

The process of creating goods or services.

Profit

The financial gain obtained when revenue from selling a product or service exceeds the costs of producing it.