The Total Operating-Income Variance for Any Period

question 81

Multiple Choice

The total operating-income variance for any period:

• A) Is unaffected by variances between actual and budgeted sales volume.
• B) Can be decomposed into a total flexible-budget variance and a sales-volume variance.
• C) Can be decomposed into a total flexible-budget variance and a sales price variance.
• D) Is equal to the sum of selling and administrative expense variances plus the total sales-volume variance for the period.
• E) Equals the sum of the total flexible-budget variance plus the sales-mix variance for the period.

---

Definitions:

Gain-sharing

A performance-based compensation strategy where employees receive bonuses based on the improvement of company metrics.

Productivity Increases

The improvement in the efficiency of production processes, leading to more output from the same amount of inputs.

Measurable Cost Reductions

Specific decreases in expenses that can be quantified and attributed to specific actions or initiatives.

Employee Assistance

Programs and services provided by employers to help employees deal with personal problems that might adversely impact their work performance, health, and well-being.