The Term Used to Refer to Persistent Variances (I

question 87

Multiple Choice

The term used to refer to persistent variances (i.e., those that are likely to recur until corrected) is

• A) Systematic variance.
• B) Random variance.
• C) Standard cost variance.
• D) Non-controllable variance.
• E) Flexible-budget variance.

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Definitions:

Beginning Inventory

The value of an entity’s inventory at the start of an accounting period.

Net Sales

Net Sales is the total revenue from sales of goods or services, after deducting returns, allowances for damaged or missing goods, and discounts.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Ending Inventory

The final valuation of goods available for sale after accounting for all additions and subtractions during a financial period.