A Firm Uses a Just-In-Time (JIT) Inventory System and Has

question 42

Multiple Choice

A firm uses a Just-in-Time (JIT) inventory system and has an unfavorable selling price variance for the period just ended. If the proportion of the total variable manufacturing costs to total sales in both the flexible budget and the actual operating results is 70%:

• A) The firm has an unfavorable total variable manufacturing cost variance.
• B) The firm has a favorable total variable manufacturing cost variance.
• C) The firm has an unfavorable total flexible-budget variance.
• D) The firm has a favorable contribution margin variance.
• E) The firm has a favorable total flexible-budget variance.

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Definitions:

Sample Data

Sample data refers to a subset of a population selected for measurement, observation, or questioning, to provide statistical analysis.

Matched Pairs

A study design where each subject is paired with a similar subject, or the same subject is tested under different conditions, to reduce variability in the data.

Sample Values

Specific measurements or observations collected from a portion of a larger group or population for analysis.

Matched Pairs T-test

A statistical procedure that compares the average values of two connected groups to ascertain if the difference between them is significant from a statistical standpoint.