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:

Type Of Lien

Legal claim or hold on property as security for payment of a debt or fulfillment of some obligation.

Property

Assets or possessions that can be owned or controlled to produce value, including real (land and buildings) and personal (movable items) property.

Creditors

Entities or individuals to whom money or its equivalent is owed.

Third Party

A third party is an entity that is neither the principal nor the counterparty in a transaction, agreement, or legal case but may have an interest or be indirectly involved.