Which of the Following Examples Would Lead Directly to a Favorable

question 137

Multiple Choice

Which of the following examples would lead directly to a favorable fixed overhead volume variance?

• A)A decrease in county property taxes for the factory
• B)Producing more units than anticipated
• C)A decrease in wages paid to factory maintenance workers
• D)Receiving a volume discount on indirect materials purchased

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Definitions:

Liquid Assets

Assets that can be quickly and easily converted into cash without significant loss in value.

Statement of Financial Position

Also known as a balance sheet, this financial statement summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into its financial health.

Shareholders' Equity

The amount of capital that shareholders have invested in a company, equal to the company's total assets minus its total liabilities.

Fixed Assets

Long-term tangible assets, such as property, plant, and equipment, used in the operations of a business and not expected to be converted to cash in the near term.