Which of the Following Statements Would Be True If Actual

question 161

Multiple Choice

Which of the following statements would be true if actual units produced exceed the budgeted units to be produced?

• A)Production volume variance is expected to be unfavorable.
• B)Overhead flexible budget variance is expected to be favorable.
• C)Production volume variance is expected to be favorable.
• D)Overhead flexible budget variance is expected to be unfavorable.

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Definitions:

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, which are recorded as assets until they are actually used.

Adjusting Process

An analysis and updating of the accounts when financial statements are prepared.

Insurance Expense

The cost associated with premiums paid by a company to insure its property, assets, or operations against loss or damage.

Ledger Accounts

Records within accounting systems that collect data and transactions related to a specific asset, liability, equity, revenue, or expense.