A Total Variable Cost Variance (Such as for Direct Materials)

question 105

Multiple Choice

A total variable cost variance (such as for direct materials) can be broken down into separate variances that evaluate:

• A) Price (rate) and efficiency (quantity).
• B) Units and cost.
• C) Volume (output) and productivity.
• D) Sales-volume versus sales-mix effects.
• E) Efforts versus results.

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Definitions:

Undue Influence

An illegitimate power exercised by one person over another in order to induce the latter to make a decision or a legal transaction that greatly benefits the former.

Non Est Factum

A legal defense claiming that a contract is invalid because the signer was unaware of its nature due to an honest mistake.

Functionally Illiterate

The condition of having limited reading and writing skills that are insufficient for everyday needs.

Mistake of Fact

A misunderstanding or incorrect belief regarding a fact that is material to a contract at the time of its formation, potentially rendering the contract voidable.