The Difference Between the Actual Operating Income of the Period

question 113

Multiple Choice

The difference between the actual operating income of the period and master budget operating income for the period is defined as the:

• A) Total flexible-budget variance.
• B) Sales volume variance.
• C) Sales price variance.
• D) Operating income flexible-budget variance.
• E) Total operating income variance.

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Definitions:

Population Standard Deviation

A statistical measure indicating the spread or variability among values in a total population.

Confidence Level

The proportion of times that an estimating procedure will be correct if it is used repeatedly.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values diverge from the mean.

Confidence Level

The Confidence Level is the percentage that represents how often the true percentage of the population who would pick an answer lies within the confidence interval.