Which One of the Following Standard Cost Variances Is Not

question 131

Multiple Choice

Which one of the following standard cost variances is not available when analyzing batch-related manufacturing overhead costs using an activity-based cost (ABC) system?

• A) Production-volume variance.
• B) Variable setup spending variance.
• C) Fixed spending variance.
• D) Fixed flexible-budget variance.
• E) Sales volume variance.

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Definitions:

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its shareholders and debt holders, weighted according to the proportion of equity and debt in the company's capital structure.

Return on Equity

A financial ratio indicating the profitability of a company relative to its shareholders' equity, calculated as net income divided by shareholders' equity.

Weighted Average Cost of Capital (WACC)

A calculation of a firm's cost of capital in which each category of capital (debt, equity, etc.) is proportionately weighted, representing the average rate that a company is expected to pay for all its financing sources.

Market Price

The immediate valuation at which one can transact assets or services in the market sector.