The Total Operating-Income Variance for Any Period

question 81

Multiple Choice

The total operating-income variance for any period:

• A) Is unaffected by variances between actual and budgeted sales volume.
• B) Can be decomposed into a total flexible-budget variance and a sales-volume variance.
• C) Can be decomposed into a total flexible-budget variance and a sales price variance.
• D) Is equal to the sum of selling and administrative expense variances plus the total sales-volume variance for the period.
• E) Equals the sum of the total flexible-budget variance plus the sales-mix variance for the period.

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Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test. Used to determine whether to reject the null hypothesis.

Alpha Level

The threshold of probability set for rejecting the null hypothesis; a measure of the likelihood of a Type I error.

Significance Level

The likelihood of incorrectly dismissing the null hypothesis as false, commonly represented by alpha.

OSHA

The Occupational Safety and Health Administration, a U.S. government agency responsible for ensuring safe and healthy working conditions.