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.

---

Definitions:

1950s

A decade marked by post-World War II recovery, economic growth, and significant social and cultural changes, including the beginning of the Civil Rights Movement in the United States.

Economics Definition

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Equilibrium

A market phase where demand is matched by supply, which in turn stabilizes prices.

Limited Resources

The scarcity of resources in comparison to the potentially limitless wants and needs, forcing the need for allocation decisions.